South Korea's stock exchange has approved Doosan Bobcat Inc.'s plan for an initial public offering (IPO) by the end of this year, expected by analysts to raise about 1 trillion won ($914.94 million).
The IPO is expected to involve either no newly issued shares or only a small number of such shares, with existing shares being floated instead to help construction-to-energy plant Doosan Group's efforts to cut debt, Seoul-based analysts said.
Doosan Infracore Co Ltd and affiliate Doosan Engine Co Ltd owns a combined 78-percent stake in the construction equipment company.
An Infracore spokesman declined to comment when asked about the deal schedule and pricing. A Doosan Engine spokesman could not be immediately reached.
Doosan Bobcat, which has North America's largest market share for small construction equipment such as skid-steer loaders, has 31 subsidiaries in 20 countries, and reported sales of 4.04 trillion won and net profit of 148 billion won in 2015, the Korea Exchange said in a statement.
Some three-quarters of Doosan Bobcat's revenue is compact construction equipment, with North America making up about 70 percent of the business.
Doosan Infracore said earlier this year favourable conditions in the North American housing construction market accelerated the listing plan.
U.S. housing starts rose more than expected in June as construction activity increased broadly, supported by a strengthening labor market and demand for rental accommodation.
