BTS to become multi-millionaires after label goes public

BTS to become multi-millionaires after label goes public
BTS perform at the MTV Video Music Awards on 31 August in New York. Source: Reuters
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Daily US Times: All seven members of South Korean popular K-pop group BTS are set to become multi-millionaires, when their label Big Hit Entertainment goes public in October.

Soaring demand for shares in Big Hit has given group a market valuation of £3.2bn ($4.1bn), with shares priced at the top of the expected price range.

Bang Si-hyuk, Big Hit boss who owns 43% of the management label, will become a billionaire.

He gave each BTS member 68,385 shares in August, worth £6.2m in total.

Currently priced at between 105,000-135,000 won (£70.03-£88.70) per share, Big Hit expects to raise about £638.3m with the sale of 7.13 million new shares when it is listed on Korea’s Stock Exchange, the KOSPI, on 15 October.

On Monday, BTS set a new record when it took just hours for underwriters to find investors to take a stake in the firm when order books opened, with demand 1,000 times higher than the available stock.

Die-hard BTS fans in South Korea are hoping to buy at least one share in the management label to support their favourite members, according to CNBC.

The even more striking thing is that this is South Korea’s largest IPO in three years.

It’s a sign that the group’s popularity has not waned, despite the risk that some of the members may soon have to do two years of compulsory military service and the group being forced to cancel their world tour due to the coronavirus pandemic.

BTS generated 97% of Big Hit’s sales in 2019, and 88% this year.

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