TODAY'S listing of BHP Steel on the Australian Stock Exchange would be seen as successful despite the uncertainty pervading global sharemarkets, securities firm Credit Suisse First Boston said yesterday.
CSFB co-managed the float of BHP Steel.
"I think the float will be seen as being very, very successful," Campbell Lobb, the co-head of CSFB's equity markets group, told Channel Nine's Business Sunday program.
"It is a demerger of BHP Steel from BHP Billiton and there has been widespread participation amongst the shareholders of BHP and also the institutional market globally."
Mr Lobb said CSFB and institutional investors had been watching the fall in the US and other markets very closely and noted investors' caution.
"But I think the underlying strengths of the business have allowed the float to go ahead, and I think it will be seen as a success, but, yes, we were nervous and cautious," Mr Lobb said.
Mr Lobb said some investors had been a little aggressive in bidding for BHP Steel shares.
There had been a lot of depth and breadth among those investors seeking the shares.
He expected the shares to be priced at $2.80, a level that had attracted a lot of support and which was a pleasing outcome.
Mr Lobb said that after a global roadshow to promote the shares, there had been more interest from global institutions than local ones.
However, local institutions were well represented on the register of BHP Steel.
Deadlines for institutional bids closed on Friday, with shares expected to be priced between $2.75 and $2.80 each ahead of today's listing.
At least 50 global institutions had put in offers last week for shares in the flat products steel producer across the indicative price range of $2.60 to $3.30.
Activity intensified as the deadline approached, with joint co-ordinators ABN Amro and CSFB working to match a last-minute surge in buy orders.
Last month's roadshow covered Asia, Europe and North America.
"The bookbuild closed heavily oversubscribed within the indicative price range," said BHP Billiton spokeswoman Mandy Frostick.
This comes on top of the retail offer which closed last week, also oversubscribed.
BHP Steel will start trading on the stock exchange at 11.30am under the code BSL.
