BTS Agency’s Big Hit Entertainment Doubles Shares During IPO

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Shares of Big Hit Entertainment, the agency behind K-pop superstars BTS, soared when they debuted on Thursday in Seoul.After being offered at 135,000 KRW each, the shares started trading at 270,000 KRW. This gives the company a value of $ 8.38 billion (KRW 9.6 trillion) and gives agency co-founder Bang Si-hyuk, with a 36% stake, a net worth of over 3 billions of dollars.

Each member of BTS, from which the agency derives about 90% of its revenue, previously received more than 68,000 shares. In just a few moments on Thursday, the value of these allocations rose from $ 8 million (KRW 9.18 billion) to $ 16 million (KRW 18.3 billion).

The debut of the IPO captured the imagination of fans and financial institutions alike. It was streamed live on YouTube and other platforms.

In recent days, stocks have been priced at the top of their suggested range. When the company was touted to institutions, offers were made for more than 100 times the amount of the shares offered. The retail offer that followed saw individual investors asking for 607 times more shares than the company was selling, although some analysts noted it was less than 1,000 times more take-up than Kakao’s IPO. Games had benefited.

Many of the contestants would have been fans asking for a single share, who suggested they buy a piece of memorabilia, rather than making a thoughtful financial investment.

BTS was shaken earlier in the week when Chinese officials and mainland Chinese nationalists criticized group member RM for the content of an acceptance speech for the awards. They suggested that his reference to the Korean War was an insult to China, which was fighting alongside North Korea.

But the good news came on Tuesday, when the South Korean government hinted that it needed to rethink its system of compulsory military service. Under current rules, every man under the age of 28 must be available for conscription and can serve up to two years. Exemptions and postponements were granted to the best Korean classical athletes and musicians for their contribution to improving the country’s reputation abroad. To date, no K-pop celebrity has been granted an exemption, but Defense Minister Suh Wook said on Tuesday that a delay may be possible for the seven members of BTS.



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