K-pop sensation BTS are set for a multi-million-dollar windfall in October when shares in their record label go on sale, with a public offering valuing the company at over US$4 billion. The trailblazing septet cemented their prominence in the world’s biggest music market last month, when their all-English track Dynamite debuted at number one on the Billboard Hot 100.
— BTS_official (@bts_bighit) September 28, 2020
BTS’ label Big Hit Entertainment priced its initial public offering at US$115, the firm said in a regulatory filing Monday, the top end of its indicative price range, giving the agency a market value of US$4.1 billion. Big Hit CEO Bang Si-hyuk, who owns 43% of the agency, is worth US$1.4 billion with the offerings, according to the Bloomberg Billionaires Index. With the IPO, all seven members of the group, currently the world’s biggest boyband, are also set to become multi-millionaire stakeholders.
Last month the members were given 68,385 shares each from Bang worth about US$8 million at the offering price. During demand forecasting sessions last week, 1,420 institutional investors showed interest in more than 1,100 times the number of shares available, the firm said in the regulatory filing.
BTS’ passionate fans, as well as retail investors, are bidding in hopes of securing at least one share. Big Hit will raise US$823 million, according to the firms’ regulatory filings, the largest South Korean IPO since Celltrion Healthcare raised US$855 million in 2017.
— BTS_official (@bts_bighit) September 17, 2020
K-pop and K-dramas have been South Korea’s most successful cultural exports and is a key component of the “Korean Wave” that has swept Asia and beyond over the last two decades. Just look at the collaborations the K-pop girl group Blackpink have done with Nicki Minaj and most recently, Selena Gomez, not to mention the scores of Korean movies and dramas available on streaming platforms such as Netflix and iflix.
BTS’ chart-topping single Dynamite alone could generate more than US$1.4 billion for the South Korean economy and thousands of new jobs in the country, a government study claimed earlier this month.
Source: AFP Relax News