BHP spin-off South32 hits the ASX with an $11 billion market cap

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South32, the BHP spinoff, opened on the ASX today at $2.13 and was quickly trading at $2.20.

This gave the company a market capitalisation of about $11.3 billion, making it the third largest miner after its parent BHP and Rio Tinto.

The price is at the lower end of estimates. Analysts had a range of between $2 and $3.

At the same time, BHP shares were sold down more than 7% .

South32 closed the day at $2.05. BHP was down 7.26% to $30.13. Combined, the two are 31 cents short of BHP’s Friday close of $32.49.

South32’s asset portfolio is spread across five countries and includes alumina, aluminium, coal, nickel, manganese, silver, lead and zinc.

This leaves BHP to concentrate on iron ore, petroleum, copper and coal.

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