Shares of Big Hit Entertainment, the agency behind K-pop superstars BTS, soared during their stock exchange debut Thursday in Seoul.
After being offered at KRW135,000 each, the shares began trading at KRW270,000. This gives the company a valuation of $ 8.38 billion (KRW9.6 trillion) and gives agency co-founder Bang Si-hyuk, with a 36% stake, a net worth of over $ 3 billion.
Each member of BTS, from which the agency earns approximately 90% of its revenues, had previously received more than 68,000 shares. In a few moments on Thursday, the value of these grants increased from $ 8 million (KRW 9.18 billion) to $ 16 million (KRW 18.3 billion).
The IPO debut captured the imagination of both fans and financial institutions alike. It was live streamed on YouTube and other platforms.
For the past few days, the shares have been trading at the top of the suggested range. When the company was advertised to institutions, bids were made for over 1
It is believed that many of the nominees were fans asking only for a share, suggesting buying an heirloom, rather than making a thoughtful financial investment.
BTS had been unnerved earlier in the week when Chinese authorities and mainland Chinese nationalists criticized band member RM for the content of an awards acceptance speech. They suggested that his reference to the Korean War was an insult to China, which was fighting on the side of North Korea.
But the good news came on Tuesday when the South Korean government hinted at a rethink of its compulsory military service system. Under current rules, every male under 28 must be available for conscription and can serve up to two years. Exemptions and postponements have been granted to Korea’s top classical athletes and musicians for their role in elevating the country’s reputation overseas. To date, no K-pop celebrities have been granted the exemption, but Defense Minister Suh Wook said on Tuesday that a deferral for the seven BTS members may be possible.