K-Pop Sensation Label BTS Ranks IPO High-End

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South Korean boy band BTS backstage at the 61st Annual GRAMMY Awards at Staples Center on February 10, 2019 in Los Angeles, California.,John Shearer | Divertissement Getty Images | Getty Images

SINGAPORE – Shares of Big Hit Entertainment, the music label behind global K-pop phenomenon BTS, were priced in the high-end on Monday ahead of their much-anticipated market debut.Big Hit Entertainment’s share price has been pegged at 135,000 South Korean won (about $ 115) per coin, according to a regulatory filing on Monday. It was at the high end of the previously announced 105,000 to 135,000 won per share range. Big Hit is expected to debut in the market in October.

According to the regulatory filing, Big Hit will also raise 962.55 billion Korean won (approximately $ 820 million) from the offer. The stock has been oversubscribed 1,117 times by institutional investors, according to the filing.

Entertainment stocks in South Korea emerged in the wake of Big Hit’s IPO price announcement. YG Entertainment shares rose nearly 10%, JYP Entertainment rose 8.36% and SM Entertainment jumped more than 6%.

A recent report from Reuters indicated that retail investor interest in the Big Hit IPO is expected to be strong, with BTS fans apparently looking to secure shares of the label.

Reuters also said demand from South Korean retail investors for new stock quotes was strong as markets were filled with liquidity after the government’s stimulus efforts to support the coronavirus-hit economy.

Earlier in September, South Korean video game publisher Kakao Games debuted in the successful market, and its shares jumped from the daily allowable limit of 30% on the first day of trading.

–CNBC’s Chery Kang contributed to this report.

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