Going IPO

One day after BTS' Dynamite topped Billboard Hot 100, their agency Big Hit Entertainment stated its plan to go public next month. With this IPO, Big Hit plans on raising up to 962.6B KRW (Approx. 808M USD).

On September 2, Big Hit announced its plan to list on KOSPI next month after submitting a stock report to the Financial Supervisory Service with a suggested offering price at 105,000-135,000KRW.

The market capitalization is expected to be 3.5-4.5T KRW (2.9-3.8B USD). The public offering price will be confirmed on September 28 and offered to public on October 5 to 6.

What's Behind Big Hit's Success?

Big Hit's operating profits in the first half of 2020 was 49.7B KRW (Approx. 41.7M USD), which is 34.2% higher than those of SM, YG and JYP combined.

BTS contributed to 97.4% of the operating profits last year and 87.7% the first half of this year.

Big Hit has built its own platform by combining information technology with the traditional entertainment industry. It's also growing into a comprehensive content company by expanding its business with performance productions and intellectual property rights.

How Much Will BTS Get From The IPO?

On August 3, the agency's founder and co-CEO, Bang Si-hyuk, granted 478,695 shares to BTS, each member getting 68,385.

If the public offering price is assumed at 135,000KRW (the highest), they will each own shares worth 9.231B KRW (Approx. 7.7M USD). 

If the IPO price doubles and reaches the daily limit on the first day, each member's shares will amount to 24.003B KRW (Approx. 20M USD).

Meanwhile, Bang Si-hyuk owns 43.44%, which equals 12,377,337 shares, while Netmarble, the country's largest game developer owned by Bang Si-hyuk's cousin, is the second biggest shareholder owning 24.87% of Big Hit.

Source: Donga, Chosun, iNews24

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