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UPDATE 1-S.Korea's Doosan Bobcat cuts IPO goal to $890 mln, less than half original plan
October 13, 2016 / 9:21 AM / 10 months ago

UPDATE 1-S.Korea's Doosan Bobcat cuts IPO goal to $890 mln, less than half original plan

* Construction equipment firm pulled prev plan on Oct. 10

* Doosan Bobcat aims to list on Nov. 18

* Still S.Korea's largest listing since Dec. 2014 (Adds milestone, shareholders, parent stock move)

By Joyce Lee

SEOUL, Oct 13 (Reuters) - South Korean construction equipment maker Doosan Bobcat Inc slashed the amount it aims to raise in an initial public offering (IPO), targeting less than half of its original goal after investors baulked at the previous price tag.

In a statement on Thursday, the firm's parent company, construction equipment group Doosan Infracore, said it was seeking up to 990.9 billion won ($890 million), three days after it pulled a prospectus targeting up to 2.45 trillion won ($2.2 billion) in the IPO.

Potential investors thought the original IPO was too expensive compared with South Korean peers, two Seoul-based institutional investors previously told Reuters.

The listing is still expected to be South Korea's largest since December 2014, but the lowered ambitions could prompt others to review valuations for IPOs now in the pipeline, analysts said.

Upcoming deals include Samsung BioLogics Co Ltd's up-to-$2 billion planned offering or that of the country's largest mobile games company, Netmarble Games Co.

Doosan Bobcat's new indicative price range is 29,000-33,000 won per share, with 30 percent of the company to be sold in a listing planned for Nov. 18, Doosan Infracore said.

Outside investors will exit Doosan Bobcat by selling a combined 16.5 percent stake in the offering. Doosan affiliates, including Infracore, will sell a 13.5 percent stake, securing funds of up to 450 billion won to pay back debt and improve balance sheets.

Shares in Doosan Infracore closed down 3.6 percent on Thursday.

$1 = 1,114.7500 won Reporting by Joyce Lee; Editing by Edwina Gibbs and Kenneth Maxwell

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