Doosan Bobcat to delay IPO

Doosan Bobcat said Monday it will delay its slated initial public offering on the local stock market to next month, due mainly to low market response.

Doosan Group’s subsidiary was seeking to offer a price band between 40,100 won ($36) and 50,000 won for the IPO next week amid concerns that the sale price was too high. It had been projected to draw 2.45 trillion won if the price reaches the upper limit. 

“(Doosan Bobcat) will make a public announcement over the changed public offering conditions within one month,” said the company in its regulatory filing.

The IPO move is considered an attempt by the parent group to improve its financial health. Doosan Group had forecasted that Doosan Bobcat’s IPO would cut its debt of 11 trillion won to 9 trillion won.

After the regulatory filing over the IPO delay was released, Doosan Group’ units, including Bobcat, opened lower in the stock market.

As of 11 a.m., Doosan Infracore, which holds a stake in Doosan Bobcat with Doosan Engine, recorded a 7.35 percent fall in its stock price which was 7,190 won compared to the previous trading day.

The stock price of Doosan Group and Doosan Heavy Industries and Construction also dropped by 2.46 percent and 2.86 percent, respectively.

By Lee Hyun-jeong (rene@heraldcorp.com)