In the past year, Big Hit has acquired game company Superb and agencies Pledis Entertainment and Source Music, which house artists GFRIEND, SEVENTEEN, and NU’EST. Now, BTS’ agency takes a significant step toward IPO.
As per Soompi, Big Hit Entertainment has passed the preliminary screening for its planned Initial Public Offering (IPO). The Korea Composite Stock Price Index has approved Big Hit, which houses the world phenomenon- BTS.
KOSPI is the all common stock index traded on the Stock Market Division of the Korea Exchange. South Korea’s representative stock market index is equivalent to the S&P 500 of the United States.
Per Korea Exchange (KRX), the Big Hit entertainment received their listing eligibility results from the preliminary screening on August 7. It will soon appear that they will be listed in the latter half of the year if everything goes as planned.
Basing from the KOSPI listing rules, Big Hit must submit an application for the new listing within six months, based on the notice they received from their preliminary results, and begin their registration process.
Furthermore, the move will be managed by NH Investment and Securities, JP Morgan, and Korea Investment and Securities. Mirae Asset Daewoo, Korea’s most significant investment banking and stock brokerage company, will serve as their joint advisor.
Meanwhile, producer Bang Si Hyuk first founded Big Hit Entertainment in February 2005 and now houses BTS, Lee Hyun, and TXT. Bang Si Hyuk holds 43.4 percent of the company’s shares as of the day Big Hit Entertainment submitted their preliminary application.
Big Hit Reigns Despite Pandemic
Per UPI, most South Korean Firms are having massive IPO success despite fears that the COVID-19 pandemic would have an enormous effect on the economy and the country’s IPO market. Big Hit strived to go public earlier this year that double to $487 million their income from 2018, and its operating profit of 2019 jumped more than 20 percent year-on-year.
Big Hit’s value is expected to be up to $4 billion, showing potential anchor in South Korea’s economy, which has otherwise taken damage from the virus outbreak.
