S.Korea Doosan Bobcat delays IPO as valuation falls short (updated)

HD Hyundai Infracore Co

10/10/2016 24:45

* Was to be S.Korea's 2nd-largest listing at top of range 
    * Bobcat will submit new IPO plan - shareholder 
 
 (Adds Bobcat filing, comment, background) 
    By Joyce Lee 
    SEOUL, Oct 10 (Reuters) - South Korea's Doosan Bobcat Inc on 
Monday said it had cancelled plans for an up to 2.45 trillion 
won ($2.2 billion) initial public offering after the valuation 
fell short of its expectations.  
    "We have conducted a bookbuilding to determine the final IPO 
price but decided to postpone the IPO considering conditions 
such as the difficulty of receiving an adequate evaluation of 
the company's value," it said in a filing.    
    Doosan Bobcat would submit a new IPO plan as soon as 
possible, largest shareholder Doosan Infracore Co Ltd 
 042670.KS  said in a regulatory filing on Monday.  
    The construction equipment maker conducted bookbuilding last 
week, after setting a preliminary price range of 41,000-50,000 
won per share in September. At the top of the range it could 
have been South Korea's second-largest listing ever. 
 urn:newsml:reuters.com:*:nL3N1BK330 
    The IPO proceeds were expected to be used to pay off the 
debts of its parent, Doosan Infracore.  
    Under South Korean exchange rules, Doosan Bobcat has until 
February 2017 to list or start the process over.  
    Doosan Infracore and affiliate Doosan Engine Co Ltd 
 042670.KS  currently own a combined 78 percent stake in Doosan 
Bobcat. 
     
($1 = 1,114.7500 won) 
 
 (Reporting by Joyce Lee; Editing by Diane Craft and Stephen 
Coates) 
 ((jungyoon.lee@thomsonreuters.com; +82 2 3704 5609; Reuters 
Messaging: jungyoon.lee.thomsonreuters.com@reuters.net)) 
 
Keywords: DOOSAN BOBCAT IPO/