BTS’s record label Big Hit Entertainment launched on the Seoul stock exchange, and already it is becoming popular among investors.
The management of hugely popular South Korean boy band BTS had just traded publicly in the Seoul stock exchange. And on its debut, the company, Big Hit Entertainment, more than doubled its already-high initial public offering, which boosted the management firm’s value.
The Business Side
Last week, the record label of K-Pop band BTS went public, which already saw their shares doubled on launch. Big Hit Entertainment started trading on October 15 at 270,000 won (around US$240). It was double the IPO price of 135,000 won (around US$120). Stocks for the firm rose by 30 percent, while the Kospi index dropped by 0.3 percent.
BTS’ Agency, Big Hit Entertainment, Doubles Shares on IPO Debut https://t.co/b4R9Kux1hj
— Variety (@Variety) October 15, 2020
Meanwhile, the management firm’s market value reached about 10 trillion won ($8.5 billion), Business Insider reported. Big Hit Entertainment also gave over 68,000 shares to each of the members of the boy band. It increased their fortune, as well. Those shares amount to about $8 million stake, making the members multi-millionaires. The CEO of the label, Bang Si-Hyuk, with 43 percent ownership of Big Hit Entertainment, has an estimated fortune of $1.4 billion, per the Bloomberg Billionaires Index.
The Cultural Impact
Actually, the band dominated the charts not just in South Korea but also in other parts of the world, like the US. BTS, generating billions of dollars, became an important aspect of the South Korean economy and its reputation in international lands.
So, investors wanted to take part in that. They set aside the pandemic that restricts live performances and the possibility of them enlisting in military services. Particularly one of their members, Jin, who will be 28, might have to serve for about two years in the military, per the country’s law.
The Boy Band
BTS, which means “Beyond The Scene,” is a South Korean boy band With seven members. The band actually accounted for 97 percent of sales for Big Hit last year, and 88 percent for the year, according to Business Insider.