Big Hit Entertainment’s initial public offering (IPO) is a rousing success thanks to K-Pop group BTS.
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Here’s what to know about the Big Hit IPO.
- The company is listing its shares on the Korea Exchange.
- The IPO saw the company raising 963 billion won.
- That makes it the largest South Korea IPO since 2017.
- The starting price of the Big Hit IPO was 135,000 won per share.
- However, the stock quickly climbed higher until closing at 258,000 won per share on Thursday.
- Thanks to the successful IPO, Big Hit is now worth 8.7 trillion won.
- The company reported revenue of 587 billion won in 2019 and that’s largely thanks to BTS.
- The K-Pop group was responsible for 97% of Bit Hit’s revenue that year.
- Each member of BTS received 68,385 shares of Big Hit stock in August.
- Those collections of shares have a total value of more than 17 billion won each.
- With the stock continuing to increase in price, members of BTS are seeing their wealth further increase.
- One thing worth noting is that the lock-up period on selling shares from the IPO is only one month for 30% of institutional investors.
- That means Big Hit Entertainment may see a drop in its stock if those institutional investors sell their shares.
- Another concern facing Big Hit is the age of the BTS members.
- South Korea has mandatory military service for men and two of BTS’ members are approaching the required age to serve.
- That service could split the group up and lead to less popularity among fans.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
