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IPO to help Doosan Bobcat venture into emerging market: exec

All News 15:55 October 06, 2016

SEOUL, Oct. 6 (Yonhap) -- Doosan Bobcat Inc., a unit of power and construction equipment conglomerate Doosan, will expand its presence in emerging markets as the company is set to make a market debut here later this month, a company executive said Thursday.

In August, the company received preliminary approval for its initial public offering (IPO) planned on Oct. 21.

"With the planned IPO, we will seek to emerge as a global player by creating new demand in Europe and emerging markets," Kim Jong-seon, an executive director at Doosan Bobcat, said in a meeting with reporters.

"Investors will be given an opportunity to invest in Doosan Bobcat," he said.

Doosan Infracore Co. and Doosan Engine Co. own a majority 78.4-percent stake in Doosan Bobcat, which operates 31 subsidiaries in 20 countries. Doosan Bobcat is a leading player in the small construction machinery sector in the United States.

Doosan offered a price band of between 40,100 won (US$36) and 50,000 won for the IPO, and is expected to raise up to 2.45 trillion won if the price is set at the upper limit.

It would become the country's second-biggest market debut since Samsung Life Insurance Co.'s 4.89 trillion won in 2010.

The IPO plan is part of Doosan Group's efforts to improve its financial status. The power-to-construction equipment conglomerate has raised trillions of won by selling assets in recent years to survive a prolonged slump in the construction industry.

Doosan Group hopes its debt will be reduced to 8 trillion won from the 11 trillion won recorded at the end of last year with the proceeds from the IPO.

Doosan Bobcat's major products include a compact track loader and a mini excavator, whose market shares top the North American market.

Doosan Bobcat has seen sharp growth in the past few years.

Last year, Doosan Bobcat posted an operating income of 386 billion won on sales of 4.04 trillion won.

In the first half of the year, Doosan Bobcat logged an operating income of 235 billion won on sales of 2.15 trillion won.

Doosan Bobcat said it seeks to expand its presence in China with market-tailored construction equipment.

In 2007, Doosan Infracore acquired Bobcat and other construction equipment units from North Carolina-based Ingersol Rand PLC for $4.9 billion.

JP Morgan and Korea Investment & Securities Co. are the lead managers for the IPO.

IPO to help Doosan Bobcat venture into emerging market: exec - 1

sam@yna.co.kr
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