K-pop group BTS' label Big Hit debuts at double its IPO price


Korea K-Pop band BTS

SEOUL: Big Hit Entertainment, the management label of popular South Korean boy band BTS, debuted at double its initial public offering (IPO) price on Thursday, as investors scrambled for a piece of the country's largest listing in three years.

Big Hit shares opened at 270,000 won, valuing the company at about 9.6 trillion won ($8.38 billion), compared with an IPO price of 135,000 won per share last month.

The stock rose as much as 30% in early trade to 351,000 won, compared with a 0.3% fall on the benchmark KOSPI. That puts the company on track to join the all-time top 10 debuts on the South Korean stock market, based on first-day closing prices.

South Korean retail investors earlier this month laid out 58.4 trillion won in orders for Big Hit shares, falling just short of a record 58.55 trillion won for the retail portion of Kakao Games' listing in September.

Big Hit relies heavily on BTS, with the Billboard-topping group accounting for 87.7% of the label's revenue in the first half of 2020, according to a regulatory filing.

The seven-member boy band has a huge global fan base, which the label has promoted effectively through social platforms and online performances since in-person performances were cancelled because of the coronavirus pandemic.

Analysts say the company has proved itself extremely online savvy, using Youtube and social media for market infiltration. It also has an unprecedented level of control over its revenue streams via its Weverse fandom platform that distributes BTS content and sells merchandise, which has the potential to draw in other artists.

"Big Hit has a different business model than the other big three K-Pop labels, JYP, SM and YG," said Nam Hyo-ji, analyst at KTB Investment & Securities. "Although not completely free from the effect of COVID-19, it's freer than other labels."

BTS earned a Guinness World Records title for most viewers for a livestreamed performance after its first paid online concert in June drew nearly 757,000 from 107 countries.

The listing ceremony at the Korea Exchange (KRX), attended by Big Hit founder and co-CEO Bang Si-hyuk, was broadcast live on the label's Youtube channel. The listing makes the BTS members multimillionaires, with each granted shares worth as much as 24 billion won ($20.94 million) according to early trade. ($1 = 1,146.1300 won) - Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

100% readers found this article insightful

Next In Business News

Alliance Bank posts lower 2Q net profit of RM103.94m on higher reserves
Pandemic and travel curbs hit Datasonic Q2 earnings�
Higher net profit for Hong Leong Bank
KNM bags RM93.6mil job in Berlin
Axiata records 3Q earnings recovery
Maybank records lower net profit of RM1.95b in 3Q
KLCI stays afloat of 1,600, bank earnings in focus
October exports up 0.2% to RM91.1b, exceed forecast
Huawei founder urges Honor subbrand to become competitor after split
Construction drives SCIB’s 3Q strong financial results

Stories You'll Enjoy