Rermag 5971 Bobcat 211691 Backhoe Mg5126 14e7 Fc 1
Rermag 5971 Bobcat 211691 Backhoe Mg5126 14e7 Fc 1
Rermag 5971 Bobcat 211691 Backhoe Mg5126 14e7 Fc 1
Rermag 5971 Bobcat 211691 Backhoe Mg5126 14e7 Fc 1
Rermag 5971 Bobcat 211691 Backhoe Mg5126 14e7 Fc 1

Doosan Bobcat Reduces Size of Planned South Korea IPO

Oct. 14, 2016
Doosan Bobcat, a division of Doosan Infracore, South Korea’s largest equipment manufacturer, has postponed the date and reduced the size of its planned initial public offering, according to Asian news reports.

Doosan Bobcat, a division of Doosan Infracore, South Korea’s largest equipment manufacturer, has postponed the date and reduced the size of its planned initial public offering, according to Asian news reports. The listing, originally scheduled for Oct. 21, has been postponed to the middle of November, with a reduction in its asking price of higher than 30 percent. Although interest in the float was lukewarm, the IPO is still expected to be the largest in South Korea this year.

Doosan Bobcat is still planning to offer 30 million shares at a price range of 29,000 won to 33,000 won (U.S. $25.6 to $29.2) per share.

“Doosan Bobcat has adjusted the number of total shares to be offered and the price range to better reflect market expectations, as well as the result of the forecast demand and public opinion for this IPO,” said a company statement. Analysts suggested the poor response was more a reflection of the current Korean IPO environment than a lack of confidence in Doosan Infracore, which had hoped to cut its debt to about 3 trillion won from 4.1 trillion.

Doosan Infracore owns a 66.5 percent stake in Bobcat. The company still expects to raise as much as 450 billion won (almost U.S. $400 million).

Doosan Infracore, acquired Ingersoll-Rand Co.’s Bobcat business and other equipment units for $4.9 billion in 2007, the largest overseas acquisition by a South Korean company. Doosan Bobcat posted 234.8 billion won in operating profit in the first half of this year.