S.Korea's Doosan Bobcat IPO to raise up to $2.25 bln (updated)

Hanwha Engine

08/09/2016 11:05

* Preliminary share price range 41,000-50,000 won per share 
    * Expected to be S.Korea's second-largest listing ever 
    * Series of big S.Korean listings expected 
 
 (Adds details, comments) 
    SEOUL, Sept 8 (Reuters) - Construction machinery maker 
Doosan Bobcat Inc said on Thursday its planned initial public 
offering (IPO) this year could raise up to 2.45 trillion won 
($2.25 billion), more than expected, in what could be South 
Korea's second-largest listing ever.   
    Doosan Bobcat, which submitted listing plans to financial 
regulators on Thursday, plans to use the proceeds to pay off the 
debts of its parent Doosan Group. It plans to list on Oct. 21. 
    The preliminary price range for the IPO was 41,000 to 50,000 
won per share, with a total 49 million existing shares to be 
listed, the company said.  
    "Doosan Bobcat is only listing existing shares, as the IPO 
is to pay down the group's debt," said a spokesman at Doosan 
Infracore  042670.KS , Bobcat's largest shareholder.  
    Doosan Bobcat has the largest market share in North America 
for small construction equipment such as skid-steer loaders. 
Doosan Infracore Co Ltd and affiliate Doosan Engine Co Ltd 
 082740.KS  own a combined 78 percent stake, which will be pared 
down.  urn:newsml:reuters.com:*:nL3N1AX1P0 
    Last month, IFR, a Thomson Reuters publication, reported 
that Doosan Bobcat's IPO could raise between $1 billion and $2 
billion.  urn:newsml:reuters.com:*:nL3N1BC12R 
    Although Hotel Lotte's up to $4.5 billion IPO collapsed in 
June due to a criminal probe, South Korea expects at least two 
major listings - that of Doosan Bobcat and Samsung BioLogics - 
by the end of this year.  urn:newsml:reuters.com:*:nL4N195138 
    The listings come as some family-run conglomerates, or 
"chaebol," sell assets to smooth paths toward management 
succession or ease debt burdens.  urn:newsml:reuters.com:*:nL4N16J1EZ 
    Samsung BioLogics Co Ltd, Samsung Group's biopharmaceutical 
contract manufacturing arm, sought approval in August for a 
planned IPO expected by analysts to raise roughly 2-3 trillion 
won.  urn:newsml:reuters.com:*:nS6N17L01F 
    Celltrion Healthcare Co Ltd, affiliate of biosimilar drug 
developer Celltrion Inc  068270.KQ , and Netmarble Games Corp, 
South Korea's top mobile game company, have also chosen advisers 
for potential IPOs.  urn:newsml:reuters.com:*:nL3N16C1V4 
    So far this year, South Korea has had 7 new listings on the 
main KOSPI  .KS11  raising a combined 772 billion won, according 
to Korea Exchange.  
  ($1 = 1,089.6400 won) 
 
 (Reporting by Joyce Lee; Editing by Jacqueline Wong) 
 ((jungyoon.lee@thomsonreuters.com; +82 2 3704 5609; Reuters 
Messaging: jungyoon.lee.thomsonreuters.com@reuters.net)) 
 
Keywords: DOOSAN BOBCAT IPO/