K-POP Band BTS's producer set to make splash IPO debut in South Korea

Published 01 Oct,2020 via The Korea Times News

Big Hit Entertainment, the management agency of K-pop superstar BTS, will make its debut on the main bourse this month, arguably emerging as the top entertainment pick by investors this year.

The company will open subscription for retail investors Monday and Tuesday at an initial public offering (IPO) price of 135,000 won (US$115).

The firm set its listing date for Oct. 15. Based on the offering price, Big Hit Entertainment is forecast to raise 962.55 million won ($822 million) through the planned IPO, with its market value estimated to reach nearly 4.8 trillion won ( $4.1 billion )

The projected market capitalization of Big Hit Entertainment is well above the combined market capitalization of the South Korea's three music management agencies JYP Entertainment, YG Entertainment and SM Entertainment.

Big Hit Entertainment has been dubbed one of this year's three big IPO deals in South Korea, along with biopharmaceutical blue chip SK Biopharmaceuticals and mobile game giant Kakao Games.

The planned IPO comes amid keen interest from local investors, as BTS made history last month by becoming the first South Korean artist to top Billboard's Hot 100 singles chart with its disco-pop single "Dynamite."

Last year, the agency's annual sales almost doubled to 587.2 billion won ( ~$500 million), with an operating profit of 98.7 billion won ($84 million)

Local brokerage houses have offered varied target prices for Big Hit Entertainment, with Hana Financial Investment Co. forecasting Big Hit Entertainment's market value to reach as high as 14 trillion won ( ~ $12 billion). (Yonhap)

About BTS

BTS, an acronym of Bangtan Sonyeondan or “Beyond the Scene”, is a South Korean boyband that has been capturing the hearts of millions of fans globally since their debut in June 2013. The members of BTS are RM, Jin, SUGA, j-hope, Jimin, V and Jung Kook. Gaining recognition from their authentic, self-produced music and top-notch performances to the way they interact with their fans, the band has established themselves as global superstars breaking countless world records. While imparting a positive influence through activities such as the LOVE MYSELF campaign and the UN ‘Speak Yourself’ speech, BTS has mobilized millions of fans across the world (named ARMY), topped prominent music charts, sold out worldwide tours including stadiums and has been named as one of TIME 100: The Most Influential People of 2019. The band has also been recognized with numerous prestigious awards like the Billboard Music Awards and American Music Awards. ( Source : BTS Official Website - https://ibighit.com/bts/)

About Big Hit Entertainment Co., Ltd.

Big Hit Entertainment Co., Ltd. is a South Korean entertainment company established in 2005 by Bang Si-hyuk. It currently manages soloist Lee Hyun and idol groups BTS and TXT. The company has multiple subsidiaries, including Source Music, and is the largest shareholder in Pledis Entertainment.[5]