Euromoney, November 2016
In a woeful environment for IPOs in Asia, it would be nice if the ones that did reach the market were done properly.
October brought a mishandled IPO in South Korea that should instead have set a positive tone for several big equity fundraisings due in that country. Doosan Bobcat’s IPO is a knock-on effect of chaebol restructuring, a theme Euromoney will report on in more detail next month. There are two parallel themes here: a healthy chaebol like Samsung (exploding phones notwithstanding) which is trying to reorganize in order to focus on core businesses; and groups like Doosan that have to sell because of financial pressures.
It was perhaps a failure to recognize how heavily Doosan falls into the second camp – and how well aware of that investors are – that derailed its opening attempt at this deal. Its IPO represents a sell-down by two other members of the chaebol (Doosan Infracore and Doosan Engine) and by several private equity funds of their stakes in the farming and construction equipment manufacturer.