Mogul behind K-pop band BTS is now a billionaire thanks to IPO
- South Korea’s largest listing in years is making Big Hit founder Bang Si-hyuk worth US$1.4 billion
- But the agency’s heavy reliance on the boy band could also become a drawback, as some of its stars may have to do military service
After blowing up the charts with Dynamite, the first English song from South Korean boy band BTS, Big Hit Entertainment Co. is having another moment.
This time, it’s with an initial public offering that is giving the company a market value of about US$4 billion. The country’s largest listing in years took just hours for underwriters to find buyers for the available stock and priced on Monday at the top end of a marketed range.
“It seems reasonable to go for the higher price as the prospect for next year’s results seems positive,” said Sung Jun-won, an analyst at Shinhan Investment Corp. “Album sales have gone up in the absence of concerts, and BTS is at the centre of the ongoing popularity.”
The offering is making Big Hit founder Bang Si-hyuk worth US$1.4 billion, according to the Bloomberg Billionaires Index. The seven band members, all in their 20s, are also getting about US$8 million stakes after Bang gave each of them 68,385 shares in August.