POSCO Eng invited pitches for IPO mandate-sources

SEOUL, Nov 12 (Reuters) POSCO Engineering&Construction, a unit of South Korean steel maker POSCO , is mulling a 2008 initial public offering in Seoul that is expected to value the firm at about .5 billion, two sources said on Monday.

POSCO, the world's fourth-largest steel maker, is seeking to list the construction unit to cash in on a bullish stock market and had asked banks to pitch for mandate in October, the sources familiar with the plan told Reuters, asking not to be identified.

No details have been set as to how much of the company would be sold to the public, but the sources said POSCO Engineering would likely have a market value of about 5 trillion won (.50 billion).

POSCO owns a 91 percent stake in POSCO Engineering.

''POSCO Engineering asked investment banks to send IPO proposals in October, and is expected to name underwriters in the coming months,'' one of the sources said. ''It is seeking a 2008 IPO but I am not sure whether it could be the first half.'' A POSCO Engineering spokeswoman confirmed the company was seeking to go public as early as next year but declined to elaborate.

REUTERS SI RK1302