K-Pop boy band BTS to become multimillionaire shareholders with Big Hit’s IPO
On Thursday, Big Hit Entertainment announced that the members of hugely popular South Korean K-Pop band BTS were expected to become multimillionaire shareholders after receiving shares in their label.
The South Korean entertainment company said that it started preparing for its initial public offering (IPO) that could raise to 962.6 billion Won ($811 Million).
Big Hit said in its regulatory filing on Wednesday that each BTS member would receive company shares worth 9.23 billion Won or 64.6 billion Won if the IPO would price at the top of its range in October 2020.
“The stock could perform well upon listing, as there’s a lot of liquidity in the market now… Then it depends on Big Hit’s results, but the lack of physical concerts due to COVID-19 will likely have a negative impact,” KTB Investment and Securities’ Analyst Nam Hyo-Ji stated.
According to Big Hit’s Chief Executive Officer and largest shareholder Bang Si-hyuk, 478,695 common shares were given to the seven BTS members last month “to strengthen long-term partnership with major artists and boost morale.”
Big Hit reported that it plans to offer 7.1 Million shares to the public at an indicative price range of 105,000 to 135,000 Won per share.