South32 valued at $11bn

BHP Billiton spin-off South32 has closed its first day of trade on the ASX valued at $10.91 billion, ranking it as Western Australia’s third largest company and a top 30 stock nationally.

Prior to the start of trading at 10am today, estimates of South32’s market value had ranged from as little as $7 billion to as much as $15 billion.

The stock opened trading at $2.13 per share and jumped as high as $2.22 before drifting to close at $2.05.

In terms of market capitalisation, that puts it just behind gold miner Newcrest and petroleum producer Oil Search, but just ahead of property company Goodman Group and rail provider Aurizon.

From a WA perspective it ranks after Wesfarmers and Woodside Petroleum, but well ahead of fellow miners Fortescue Metals Group and Iluka Resources.

South32 managing director Graham Kerr said the Perth-based miner was the largest company to be admitted to the ASX since AMP in 1998, and the largest ever in the resources sector.

Mr Kerr emphasised that South32 would be run differently from BHP, most notably with a regional operating model built around two support hubs in Johannesburg and Perth.

Chairman David Crawford said it was no accident that South32 was headquartered in Perth.

Perth has the expertise in drilling, design, IT and other mining disciplines that underpinned the decision to base the company here.

ASX chief executive Elmer Funke Kupper said the listing came amidst the strongest market for new listings in 10 years.

South32 is the 102^nd new listing on the ASX this financial year; collectively, the new stocks have raised $22 billion from investors.