Big Hit Entertainment, the management agency of Korean boy band BTS, debuted on South Korea’s main bourse, building a valuation greater than the country’s succeeding three major showbiz firms collectively. BTS members were not present at the ceremony.
Reportedly, Big Hit shares opened at 270,000 won on the Korea Exchange and soared by the everyday higher limit of 30% to 351,000 won 3 minutes after market opening.
According to analysts, the corporation’s high initial price may have prompted a selling spree for profit-taking.
Big Hit Entertainment Chairman and CEO Bang Si-hyuk said, “We will uphold the stockholder’s value in various terms by raising profitability, growth potential and contributions to society. We will spur efforts to become the world’s best entertainment and lifestyle company.”
Big Hit’s market limit remained at 8.73 trillion won, the mutual market limit of South Korea’s three key entertainment establishments, S.M. Entertainment, YJ Entertainment and JYP Entertainment.
According to reports, Big Hit Chairman and CEO holds a 34.7 percent stake in the company, making him the eighth-richest stockholder in South Korea.
BTS took home 123.5 billion won worth of stocks, which is 17.6 billion won per member.
Due to the global pandemic, the ceremony marked the first initial public offering (IPO) gala in about three months.
Big Hit Entertainment has been called one of this year’s three big IPO deals in South Korea, along with biopharmaceutical blue chip SK Biopharmaceuticals and mobile game giant Kakao Games.