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Doosan Bobcat ratchets up global ambitions ahead of IPO

[THE INVESTOR] Doosan Bobcat, the South Korean firm that controls US construction machinery-maker Bobcat, is stepping up plans for further business expansion in emerging markets like China and Brazil to bolster its global presence with its planned initial public offering this month.

“Based on our dominant position in the North American market, the company will tap into emerging markets to create demand for our products,” said Kim Jong-seon, managing director of Doosan Bobcat, ata press conference in Seoul on Oct. 6.

The company’s flagship products such as skid-steer loader, compact tract loader and mini excavator boast the largest market share in North America, the market that accounts for nearly 70 percent of total sales. 


Kim Jong-seon, managing director of Doosan Bobcat, speaks during a press conference held on Oct. 6. Doosan Bobcat
Kim Jong-seon, managing director of Doosan Bobcat, speaks during a press conference held on Oct. 6. Doosan Bobcat


While expanding its product portfolio in the core market, Kim said the company will seek new opportunities in countries like China, Brazil and Mexico by launching affordable small-sized construction machineries.

“We plan to roll out new skid-steer loader that fits to Chinese consumers’ demand in August next year as existing premium products have low price competitiveness in the market,” he said.

Its operating profit has grown at a compounded annual growth rate of 24.7 percent during the past five years since 2011 and is expected to keep up the momentum, according to the firm.

Given that the housing construction market in North America is in recovery stage, Doosan Bobcat decided that it’s the right time to go public and access the company’s value, he said.

Its stock market debut, which can be the second-largest stock sale in the country’s history, will be launched on the main KOSPI market on Oct. 21.

It will sell a total of 49 million shares in the offering at a price between 41,000 won and 50,000 won.

Acquired by Doosan Infracore in 2007 for $4.9 billion from Irish manufacturer Ingersoll-Rand, Doosan Bobcat has 32 affiliates in North America, Europe and Asia.

By Park Han-na (hnpark@heraldcorp.com)
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