BHP Steel jumps 7 percent on debut

SYDNEY, Australia (CNN) -- Australia's biggest steel company, BHP Steel, made its debut on the Australian Stock Exchange Monday, closing 7 percent higher on its offer price.

BHP Steel was spun-off from BHP, the Australian resources giant that merged with London-listed Billiton last year.

BHP Steel opened Monday at A$2.90, 10 cents above the offer price, and ended at A$3.00 on turnover of 55 million shares.

The broader market, measured by the S&P/ASX200, fell 0.32 percent.

The price values the company at more than A$2.3 billion. BHP Billiton has a market capitalization of about $37 billion.

One-for-five offer

Under the spin-off, BHP Billiton's shareholders in Australia were offered one share in BHP Steel for every five shares they held in BHP Billiton. The offer closed last Friday.

BHP Steel chairman Graham Krahe told the Australian Stock Exchange in a statement Monday that while the company was a newcomer to the ASX, its heritage as a steel producer dated back to 1915.

Krahe said BHP Steel has manufacturing plants in Australia, New Zealand, Thailand, Malaysia, Indonesia and the United States.