Doosan Bobcat gets preliminary IPO approval in Korea

Doosan Bobcat Inc., a unit of power and construction equipment conglomerate Doosan, has received preliminary approval for its initial public offering planned for this year, the country's main bourse said Tuesday.

Doosan Infracore Co. and Doosan Engine 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, according to the Korea Exchange.

Doosan Bobcat is expected to raise over 1 trillion won ($914 million) through the IPO.

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.

Last year, Doosan Bobcat posted a net profit of 148 billion won on sales of 4.04 trillion won.

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. (Yonhap)