SEOUL (SOUTH KOREA) – On Thursday, Big Hit Entertainment debuted at double its initial public offering (IPO) price, valuing the management label of South Korean superstar K-pop group BTS at 9.6 trillion won (6.4 billion pounds).
Big Hit, which depends heavily on the teen band, opened at 270,000 won and was trading at 4% above the offer price by late morning as investors sought a share of the country’s largest listing in three years.
It helps revive the country’s IPO activity after two mellowed years, with volumes rising 51% to $2.9 billion this year, compared with the same period last year, said Refinitiv data.
Following the government stimulus package to bolster the pandemic-hit economy, the pipeline looks strong. Online game developer Krafton and chat app operator Kakao’s mobile banking unit KakaoBank have initiated the fundamental process for listing.
The Big Hit float made the seven members of the band multimillionaires with each given shares valuing 18.5 billion won ($16 million) at the debut price.
The band tops the Billboard Chart and has a huge fan following across the world. This accounts for 87.7% of the label’s revenue in the first half.