Doosan Bobcat Inc., a construction equipment maker of South Korea's Doosan Group, presented a lower price than before Monday for its rescheduled initial public offering this month.
Doosan Bobcat's initial IPO had been set for October 21 with its proposed price band stands between 40,100 won (35 US dollars) and 50,000 won. But the IPO was put off due to an unfavorable market response.
The desired price proposed by the company on Monday was 30,000 won, a day before it starts receiving public subscriptions from retail investors. The official listing is set for November 18 with some 30 million shares, or 30 percent of the total, to be offered.
The IPO is part of efforts to improve the group's financial status through corporate restructuring, but there have been market concerns about the financial health of Doosan Infracore saddled with a debt of 2.6 trillion won.
In 2007, Doosan Infracore, the group's machinery manufacturing arm, acquired Bobcat and other construction equipment units from North Carolina-based Ingersol Rand PLC for $4.9 billion to run it in the name of Doosan Bobcat, which posted a net profit of 148 billion won on sales of 4.04 trillion won last year.
Doosan Bobcat has been seen as one of South Korea's largest IPOs this year, along with Samsung BioLogics, a Samsung Group biosimilar arm.
BioLogics' IPO on November 10 received a lukewarm market response last week when it took public subscriptions from retail investors because the price was set at the upper end of 136,000 won per share.
Aju News Lim Chang-won = firstname.lastname@example.org
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