Doosan Bobcat postpones listing

By Nam Hyun-woo

Doosan Bobcat has postponed its plan to go public and seek a spot on the Korean bourse later this month, the construction equipment maker said Monday.

Doosan Infracore, which controls the U.S.-based company, announced through a posting that “Doosan Bobcat decided to withdraw its current registration statement submitted on Sept. 8 and will seek listing through a revised registration statement.”

“This means the schedule and conditions of Doosan Bobcat’s IPO will be changed and accordingly the company’s plan to offer stocks will be modified.”

Doosan Bobcat’s listing bid garnered keen attention here as it was the first U.S. company to be listed on the Korean bourse. Also, it would have been the second-largest listing case, raising an estimated 2.45 trillion won ($2.19 billion).

The company earlier this month announced its plan to list 49 million of its old shares at prices between 41,000 won and 50,000 won. After receiving subscriptions from investors this week, the company sought to be listed on the benchmark KOSPI on Oct. 21.

However, concerns have been raised that the range of desired prices was too high even though the company was offering old stocks only.

Last week, Doosan Bobcat bookrunners, Korea Investment & Securities and JP Morgan, analyzed institutional investor demand data to price the stocks and many investors reportedly suggested prices lower than what Doosan Bobcat desires.

“There were several factors that do not match the market conditions, such as the volume of the offering,” a Doosan Infracore official said. “Through demand estimates, the company found that investors showing interest outnumber the volume of the offering, but the company has to admit that there were difficulties in narrowing the gap between interested entities.”

According to the official, the company will finish and submit a new registration statement as soon as possible. He added that the company seeks to be listed as early as November or as late as January.

“The company will revise its IPO plan in a way more friendly to the market, such as adjusting the volume of offering,” the official said.

After the company posted the news, Doosan Infracore’s shares made a plunging start on the market. As of Monday 9:03 a.m., the company’s stock was traded at 6,800 won, down 12 percent from a session earlier. At the same time, other Doosan Group affiliates also tumbled. Doosan Engine traded at 3,600 won, down 11.3 percent from the previous session, and Doosan Heavy Industries & Construction traded at 24,550 won, down 6.5 percent.