Doosan Bobcat's IPO plan gets S.Korean bourse nod, may raise $915 mln (updated)

Hanwha Engine

16/08/2016 06:59

* IPO seen raising about 1 trln won-analysts 
    * No.1 in N.American small construction equipment mkt 
share-bourse 
 
 (Adds U.S. housing background, comment) 
    By Joyce Lee and Elzio Barreto 
    SEOUL, Aug 16 (Reuters) - South Korea's stock exchange on 
Tuesday approved Doosan Bobcat Inc's plan for an initial public 
offering (IPO) by the end of this year, expected by analysts to 
raise about 1 trillion won ($914.94 million).  
    The IPO is expected to involve either no newly issued shares 
or only a small number of such shares, with existing shares 
being floated instead to help construction-to-energy plant 
Doosan Group's efforts to cut debt, Seoul-based analysts said. 
    Doosan Infracore Co Ltd  042670.KS  and affiliate Doosan 
Engine Co Ltd  042670.KS  owns a combined 78 percent stake in 
the construction equipment company.  
    An Infracore spokesman declined to comment when asked about 
the deal schedule and pricing. A Doosan Engine spokesman could 
not be immediately reached. 
    Doosan Bobcat, which has North America's largest market 
share for small construction equipment such as skid-steer 
loaders, has 31 subsidiaries in 20 countries, and reported sales 
of 4.04 trillion won and net profit of 148 billion won in 2015, 
the Korea Exchange said in a statement.  
    Some three-quarters of Doosan Bobcat's revenue is compact 
construction equipment, with North America making up about 70 
percent of the business.  
    Doosan Infracore said earlier this year favourable 
conditions in the North American housing construction market 
accelerated the listing plan.  urn:newsml:reuters.com:*:nL3N162072 
    U.S. housing starts rose more than expected in June as 
construction activity increased broadly, supported by a 
strengthening labour market and demand for rental 
accommodation. urn:newsml:reuters.com:*:nL1N1A50ER  
    "Even though the global economy is still weak and sectors 
like oil and gas or mining are stumbling, Doosan Bobcat is 
actually doing very well because housing starts in the United 
States, their main market, are quite vibrant," a person with 
direct knowledge of Doosan Bobcat's listing plans told Reuters.  
    The person declined to be identified as they were not 
authorised to speak to media.  
    JP Morgan and Korea Investment & Securities are lead 
advisers for the IPO.  
    Doosan Bobcat is not the only South Korean IPO that is being 
anticipated in the latter half of this year.  
    Samsung BioLogics Co Ltd, Samsung Group's biopharmaceutical 
contract manufacturing arm, submitted an application last week 
for a Seoul IPO expected by analysts to raise roughly 2-3 
trillion won, which would make it South Korea's largest listing 
in 2016.  urn:newsml:reuters.com:*:nS6N17L01F  
        
($1 = 1,092.9700 won) 
 
 (Reporting by Joyce Lee; Editing by Muralikumar Anantharaman 
and Stephen Coates) 
 ((jungyoon.lee@thomsonreuters.com; +82 2 3704 5609; Reuters 
Messaging: jungyoon.lee.thomsonreuters.com@reuters.net)) 
 
Keywords: DOOSANBOBCAT IPO/