(Corrects dateline to Oct 23 from Oct 22)
Oct 23 (Reuters) - Deterra Royalties Ltd DRR.AX debuted on the Australian Securities Exchange on Friday with a market value of A$2.57 billion ($1.83 billion) after being spun off from mineral sands producer Iluka Resources Ltd ILU.AX .
Deterra, the country's biggest listed mining royalty business, joins Australia's top 200 listed companies after issuing about 528 million shares, which started trading at A$4.87 per share.
The stock rose as much as 1.6% to A$4.95, before falling below its opening price to A$4.80 in midday trade.
Deterra's key asset is an iron ore royalties stream from global giant BHP Group's BHP.AX South Flank operations in Western Australia, but the company has said it plans to diversify its portfolio beyond the steel-making raw material. streaming, where a miner gets paid upfront for part of its metal production, is catching on as a way to raise capital. It offers a lower risk profile to investors by giving them exposure to rising metal prices rather than a mining company.
Deterra has said it intends to pay out all of its net profit after tax as dividends. Iluka will own a 20% minority stake in the company.
($1 = 1.4065 Australian dollars)