The Korea Herald is reporting that Doosan Bobcat Inc., a unit of power and construction equipment conglomerate Doosan, has applied for preliminary approval for its initial public offering planned for this year, the country's main bourse said Tuesday.

Doosan Infracore Co. and Doosan Engine collectively own a majority 78.4 percent stake in Doosan Bobcat, which operates 31 subsidiaries in 20 countries. Doosan Bobcat 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 fundraising plan through the IPO and the exact market shares in the two major markets.

The IPO plan 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 ($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 PLC for $4.9 billion.

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

Source: The Korea Herald