Big Hit Entertainment, the management label of hugely popular South Korean K-pop group BTS, yesterday priced its initial public offering (IPO) at the top of its range, as hopeful buyers chased South Korea’s largest listing in three years.
Institutional investors expressed interest in more than 1,000 times the number of shares on offer, with Big Hit riding on the success of the seven-member band, which has become the first South Korean group to reach No. 1 on the US Billboard Hot 100 singles chart with the song Dynamite.
An army of retail investors, known in South Korea as Ants, is also clamoring to buy stock, while die-hard BTS fans are bidding in hopes of securing even one share in what analysts expect to be the country’ hottest listing this year.
Photo: Reuters
Big Hit priced the IPO at 135,000 won per share, it said in a regulatory filing, the top of an indicative price range of 105,000 to 135,000 won announced earlier this month.
Some 1,420 institutional investors sought shares in pre-subscription offers, looking for 1,117 times the number available, the filing said.
About 98 percent said that they would pay the top-range price or more.
“Big Hit is classified as a kind of global export firm,” Yuanta Securities Korea Co analyst Park Sung-ho said.
“Not only has it proven its ability to use YouTube, social media for smart market infiltration, it has fandom platform Weverse which gives unprecedented clarity and control over its revenue sources for a label, and might grow into a true platform player as outside artists increasingly join,” Park said.
Big Hit reported a 49.7 billion won (US$42.4 million) profit for the first half of this year as its online concert and merchandise sales on the Weverse app more than offset event cancelations during the COVID-19 pandemic.
The IPO would make the seven BTS members multimillionaire stockholders, as Big Hit CEO Bang Si-hyuk last month gave them 68,385 shares each, worth nearly US$7.9 million at the issue price.
The firm would raise 962.6 billion won through the offer of 7.13 million new shares, the biggest South Korean IPO since Celltrion Healthcare Co raised 1 trillion won in 2017.
The pricing values Big Hit at about 4.8 trillion won, taking into account common shares plus redeemable preferred shares that would be converted into common shares upon the IPO.
With plenty of liquidity in the market, some analysts predict gross bids from retail investors could hit 100 trillion won.
The central bank is watching the offer closely as a massive oversubscription for shares could send ripples through short-term money markets.
Institutional and retail investors’ subscriptions are due on Monday and Tuesday next week and Big Hit is expected to list on the KOSPI on Oct. 15.
To many, Tatu City on the outskirts of Nairobi looks like a success. The first city entirely built by a private company to be operational in east Africa, with about 25,000 people living and working there, it accounts for about two-thirds of all foreign investment in Kenya. Its low-tax status has attracted more than 100 businesses including Heineken, coffee brand Dormans, and the biggest call-center and cold-chain transport firms in the region. However, to some local politicians, Tatu City has looked more like a target for extortion. A parade of governors have demanded land worth millions of dollars in exchange
Hong Kong authorities ramped up sales of the local dollar as the greenback’s slide threatened the foreign-exchange peg. The Hong Kong Monetary Authority (HKMA) sold a record HK$60.5 billion (US$7.8 billion) of the city’s currency, according to an alert sent on its Bloomberg page yesterday in Asia, after it tested the upper end of its trading band. That added to the HK$56.1 billion of sales versus the greenback since Friday. The rapid intervention signals efforts from the city’s authorities to limit the local currency’s moves within its HK$7.75 to HK$7.85 per US dollar trading band. Heavy sales of the local dollar by
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue jumped 48 percent last month, underscoring how electronics firms scrambled to acquire essential components before global tariffs took effect. The main chipmaker for Apple Inc and Nvidia Corp reported monthly sales of NT$349.6 billion (US$11.6 billion). That compares with the average analysts’ estimate for a 38 percent rise in second-quarter revenue. US President Donald Trump’s trade war is prompting economists to retool GDP forecasts worldwide, casting doubt over the outlook for everything from iPhone demand to computing and datacenter construction. However, TSMC — a barometer for global tech spending given its central role in the
The Financial Supervisory Commission (FSC) yesterday met with some of the nation’s largest insurance companies as a skyrocketing New Taiwan dollar piles pressure on their hundreds of billions of dollars in US bond investments. The commission has asked some life insurance firms, among the biggest Asian holders of US debt, to discuss how the rapidly strengthening NT dollar has impacted their operations, people familiar with the matter said. The meeting took place as the NT dollar jumped as much as 5 percent yesterday, its biggest intraday gain in more than three decades. The local currency surged as exporters rushed to
RSS