The stock of Big Hit Entertainment Co., the agency behind the famed K-pop boy band BTS, doubled on trading debut on Wednesday, reports Bloomberg. The company's shares opened for trading at 270,000 won ($235) in Seoul, which compares with its initial public offering price of 135,000 won.
What Happened: Earlier this year, Big Hit Entertainment, led by billionaire founder and chairman Bang Si-hyuk, planned for an IPO that was touted as the biggest in South Korea in three years. It selected JPMorgan Chase & Co (NYSE:JPM) and other Korean investment banking firms as lead runners.
The company's debut on Thursday pushed its market value to 11 trillion won, higher than the value of the other three major K-Pop agencies combined, as per Bloomberg.
The IPO was oversubscribed by 1,000 times by institutional investors and 600 times by retail investors. The offering boosted Bang's fortune to $3.8 billion, one of the biggest in Korea.
Bang shared his stake with seven BTS band members in August, giving each 68,385 shares — valued at more than $20 million at the stock's high price.
Why It Matters: BTS is one of the most popular K-pop bands and an important asset for Big Hit Entertainment. In fact, the agency made 90% of its revenue in the first half of 2020 from the band.
While the majority revenue from one band serves as a risk to the company, it has also made Big Hit the most valued K-pop agency.
BTS band, famous for numbers like "Dynamite" and "Spring Day," was introduced to the U.S. in 2014 and has found immense popularity.
Photo Credit: Public domain photo via Wikimedia.