* Was to be S.Korea's 2nd-largest listing at top of range
* Offering size too big, price high compared to S.Korean
* S.Korea expects other big-ticket IPOs by early next year
(Recasts, adds investor views, background)
By Joyce Lee
SEOUL, Oct 10 South Korea's Doosan Bobcat Inc on
Monday cancelled plans for an up to 2.45 trillion won ($2.2
billion) initial public offering after the valuation fell short
of its targets, and is expected to relaunch a smaller IPO within
The construction equipment maker would submit a new IPO plan
with a view to listing as soon as next month, a spokesman for
parent company and largest shareholder Doosan Infracore Co Ltd
The troubled offering could prompt rethinks about the
valuations of other big-ticket South Korean IPOs in the works,
such as Samsung BioLogics Co Ltd's up to $2 billion planned
offering or that of the country's largest mobile games company,
Netmarble Games Corp.
"The market appears to have felt the size of the offering
was too big for it to handle, and some other conditions did not
meet market expectations," the Doosan Infracore spokesman said.
Doosan Infracore shares slumped as much as 13 percent to
their lowest intraday level in over 3 months on Monday after the
Doosan Bobcat sees strong potential for its main market of
North American housing but investors thought its IPO was too
expensive compared with South Korean peers, two Seoul-based
institutional investors told Reuters, declining to be identified
as they were not authorised to speak to media.
Both people said they had submitted a price below the
preliminary pricing range of 41,000-50,000 won per share during
last week's bookbuilding.
At the top of the range it could have been South Korea's
second-largest listing ever.
Doosan Bobcat set its preliminary pricing range by comparing
with global peers such as Caterpillar Inc and Komatsu
"We have conducted a bookbuilding to determine the final IPO
price but decided to postpone the IPO considering conditions
such as the difficulty of receiving an adequate evaluation of
the company's value," it said in a filing earlier on Monday.
Doosan Bobcat has North America's largest market share for
small construction equipment such as skid-steer loaders. It has
31 subsidiaries in 20 countries, and reported sales of 4.04
trillion won and net profit of 148 billion won in 2015.
Doosan Infracore said earlier this year favourable
conditions in the North American housing construction market
accelerated the listing plan.
The IPO proceeds are earmarked to pay off Doosan Infracore
Under South Korean exchange rules, Doosan Bobcat has until
February 2017 to list or start the process over.
Doosan Infracore and affiliate Doosan Engine Co Ltd
currently own a combined 78 percent stake in Doosan
($1 = 1,114.7500 won)
(Reporting by Joyce Lee; Editing by Diane Craft and Stephen