S.Korea's Doosan Bobcat cuts IPO goal to $890 mln, less than half original plan (updated)

HD Hyundai Infracore Co

13/10/2016 10:20

* Construction equipment firm pulled prev plan on Oct. 10 
    * Doosan Bobcat aims to list on Nov. 18 
    * Still S.Korea's largest listing since Dec. 2014 
 
 (Adds milestone, shareholders, parent stock move) 
    By Joyce Lee 
    SEOUL, Oct 13 (Reuters) - South Korean construction 
equipment maker Doosan Bobcat Inc   241560.KS  slashed the 
amount it aims to raise in an initial public offering (IPO), 
targeting less than half of its original goal after investors 
baulked at the previous price tag. 
    In a statement on Thursday, the firm's parent company, 
construction equipment group Doosan Infracore  042670.KS , said 
it was seeking up to 990.9 billion won ($890 million), three 
days after it pulled a prospectus targeting up to 2.45 trillion 
won ($2.2 billion) in the IPO.  
    Potential investors thought the original IPO was too 
expensive compared with South Korean peers, two Seoul-based 
institutional investors previously told Reuters.  urn:newsml:reuters.com:*:nL4N1CF0L2 
    The listing is still expected to be South Korea's largest 
since December 2014, but the lowered ambitions could prompt 
others to review valuations for IPOs now in the pipeline, 
analysts said.  
    Upcoming deals include Samsung BioLogics Co Ltd's up-to-$2 
billion planned offering or that of the country's largest mobile 
games company, Netmarble Games Co.  urn:newsml:reuters.com:*:nL3N1CA1TV  urn:newsml:reuters.com:*:nL3N1C622T 
    Doosan Bobcat's new indicative price range is 29,000-33,000 
won per share, with 30 percent of the company to be sold in a 
listing planned for Nov. 18, Doosan Infracore said.  
    Outside investors will exit Doosan Bobcat by selling a 
combined 16.5 percent stake in the offering. Doosan affiliates, 
including Infracore, will sell a 13.5 percent stake, securing 
funds of up to 450 billion won to pay back debt and improve 
balance sheets.  
    Shares in Doosan Infracore closed down 3.6 percent on 
Thursday.  
     
($1 = 1,114.7500 won) 
 
 (Reporting by Joyce Lee; Editing by Edwina Gibbs and Kenneth 
Maxwell) 
 ((jungyoon.lee@thomsonreuters.com; +82 2 3704 5609; Reuters 
Messaging: jungyoon.lee.thomsonreuters.com@reuters.net)) 
 
Keywords: DOOSAN BOBCAT IPO/