[THE INVESTOR] Doosan Bobcat, the construction equipment affiliate of Doosan Group, has applied for preliminary approval for its initial public offering planned for later this year, the country’s main bourse said on July 5.

The firm, which operates 31 subsidiaries in 20 countries, is 78.4 percent-owned by Doosan Infracore and Doosan Engine. It is a leading player in the small-sized construction machinery sector in the United States and Europe, the main exchange said in a statement.



Doosan Infracore didn’t provide details about its fund-raising plan through the IPO and the exact market shares in the two major markets.

The listing 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 148.1 billion won (US$129 million) on sales of 4.04 trillion won, the statement said.

In 2007, Doosan Infracore acquired Bobcat and other construction equipment units from North Carolina-based Ingersol Rand for $4.9 billion.

JP Morgan and Korea Investment & Securities are the lead managers for the IPO.

(theinvestor@heraldcorp.com)