CS Credit Suisse Group

By Alec Macfarlane

Doosan Bobcat Inc., a maker of construction equipment, said it could raise as much as 2.45 trillion won ($2.2 billion) from its initial public offering in South Korea.

The South Korean company said it would offer 48,981,125 shares at a price range of 41,000 won to 50,000 won a share, meaning it could raise between 2 trillion won and 2.45 trillion won.

The price of the IPO is expected to be fixed Oct. 6 or 7, and the company will begin taking orders from retail investors Oct. 12. Shares are due to be begin trading Oct. 21.

Doosan Bobcat specializes in making compact construction equipment. Doosan Infracore Co. (042670.SE) bought the company in 2007 from Hamilton, Bermuda-based Ingersoll-Rand Co. for $4.9 billion, marking one of the largest foreign takeovers by a South Korean company at the time.

The majority of proceeds from the IPO will be used to pay down debt from Doosan Infracore's 2007 acquisition of the company, according to a person familiar with the matter.

Doosan Bobcat generated 4.04 trillion won in revenue in 2015 and 385.6 billion won in operating profit, its best sales record since it was acquired by Doosan Infracore, according to a statement. It generated 2.15 trillion won of sales and 234.8 billion won of operating profits in the first half of 2016.

Korea Investment & Securities Co. (570009.SE), J.P. Morgan Chase & Co. (JPM), Hanwha Investment & Securities Co. (003530.SE), Shinyoung Securities Co. (001720.SE), Credit Suisse Group AG (CS) and HSBC Holdings Plc. (HSBC) are handling the offering.

(END) Dow Jones Newswires

September 08, 2016 07:59 ET (11:59 GMT)

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