The unit of South Korea's biggest construction equipment maker had been aiming to raise Won2.45tn ($2.2bn) in what was on course to be Seoul's largest initial public offering in six years.

The Financial Times is reporting that Doosan Bobcat, a unit of South Korea's Doosan Infracore, has pared back its $2.2bn public float because of low demand, marking the second big blow for the South Korea's equity markets this year.

The unit of South Korea's biggest construction equipment maker had been aiming to raise Won2.45tn ($2.2bn) in what was on course to be Seoul's largest initial public offering in six years.

The country's markets have been seeking a boost since Lotte Group scrapped plans for a $4.5bn IPO of its hotels unit in June pending the outcome of a corruption investigation into the chaebol, South Korea's family-run conglomerates.

Korean IPO volumes are down more than one-quarter year-on-year in 2016 so far, outpacing a global decline, and have raised just $1.7bn in the first three quarters of the year.

This latest blow also comes as bankers are preparing the sale of Samsung Biologics, a pharmaceutical contract manufacturer, and mobile game maker Netmarble Games.

Analysts said Doosan's failure could weigh on those deals, but sources involved with the Samsung transaction reported strong early interest in its $2bn deal last week even as Doosan Bobcat's sale was reported to be in trouble.

To read more, visit Financial Times.

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