Photo by: Bloomberg
PERTH (miningweekly.com) – BHP Billiton spin-off South32 made its debut on the ASX on Monday at A$2.13 a share, giving the Australia- and South Africa-focused company an A$11.96-billion market capitalisation.
The demerged entity will on Monday also start trading on the JSE and the LSE, where it has secondary listings.
South32 CEO Graham Kerr said on Monday that the start of share trading was a significant occasion for the newly listed company.
“South32 will start life with a strong balance sheet along with high-quality, well-maintained, cash generative assets and highly talented people. We will work hard to maintain the trust of our owners and partners as we seek to unlock the potential of our assets and grow value for our shareholders and the communities in which we operate.”
The shareholders of mining major BHP Billiton in early May agreed to the divestment of South32, which consists of the aluminium, coal, manganese, nickel and silver assets previously held in the BHP portfolio.
South32 is now classified as the world’s largest producer of manganese ore and is the owner of the world’s largest silver mine.
The company is expected to start operating as an independent entity from May 25, and will have its head office in Perth, with regional offices in Johannesburg and a marketing hub in Singapore.
“We believe our regional model will enable us to improve our productivity and performance in a sustainable way. We will aim to combine strong operational performance with financial discipline as we seek to increase shareholder value,” Kerr said.
The company trades under the ticket S32 on all three exchanges.
South32 traded as high as A$2.20 a share on the ASX on Monday and touched a daily low of A$2.01 a share.