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Big Hit’s valuation increases to 18.3 billion on stock market debut

Big Hit’s valuation increases to <span>₩</span> 18.3 billion on stock market debut
Big Hit’s valuation increases to 18.3 billion on stock market debut

Big Hit Entertainment, a South Korean entertainment agency that manages idol groups like BTS, has recently announced its share hike during the stock market debut. It began trading at 270,000, having been offered at 135,000 per share.

This stock market debut has provided the agency with a valuation of $8.38 billion (9.6 trillion). In addition, it has resulted in its co-founder, Bang Si-hyuk, receiving a 36% stake, with a net worth of around $3 billion.

Furthermore, each member of BTS, the band that accounts for over 90% of the company’s revenue, has previously received above 68,000 shares. In a short period, their valuations rose from $8 million (9.18 billion) to $16 million (18.3 billion).

Most recently, Big Hit’s share was price at the top of the suggested range. Following the promotion of the company in institutions, several bids were made for above 100x the share amount on offer. Additionally, individual investors also have applied for 607x shares than the company was bidding.

Several applicants were reported to be fans who applied to gain just 1 share, suggesting they are buying a memorabilia piece, instead of considering as a financial investment.

Authorities & mainland nationalists in China have previously criticized BTS band member, RM, for his award acceptance speech. They stated that RM’s reference to the Korean war is an insult to China, which fought on the North Korean side against South Korea.

However, the band has recently been delighted with the news of the South Korean government plans to overlook the immediate enlistment of the band members to the military service system. Under the current rules, every male in the country under 28 years must be available for conscription & serve for over 2 years.

Despite these rules, deferrals and exemptions have been provided to South Korea’s classical musicians and athletes, as they play a crucial role in elevating the country’s reputation across the world. No K-pop celebrities have been exempted from enlisting to date; however, a deferral could be possible for BTS members.

Source credit:

https://variety.com/2020/biz/asia/bts-big-hit-entertainment-shares-double-ipo-1234805519/

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Omkar Patwardhan

Omkar Patwardhan started his professional career in the hospitality industry. Having nurtured a deep-sated passion for words however, he found his way into content writing and now pens down articles for theresearchprocess.com and a few other websites, spanning the sectors of business, finance, and technology./