BTS officially becomes partial owners of Big Hit Entertainment
The K-pop band has reportedly become shareholders of Big Hit Entertainment. Each member of BTS- RM, Suga, J-Hope, Jin, Jimin, V, and Jungkook—has received 68,385 shares of the company's IPO.
The BTS is currently riding on the massive success of their all English track Dynamite. The song debuted at no.1 on the Billboard’s Hot 100, the first Asian song to achieve this milestone since 1963. In their latest achievement, BTS has now become the official shareholders of Big Hit Entertainment after the company opened up for initial public offering.
Big Hit Entertainment, the management label of BTS, on Wednesday announced its debut on the Korea Composite Stock Price Index (KOSPI) in October. It further laid out its plans to raise up to 962.6 billion won ($811 million) in its planned initial public offering (IPO).
Each member of BTS- RM, Suga, J-Hope, Jin, Jimin, V, and Jungkook—has received 68,385 shares of Big Hit Entertainment. According to Bloomberg’s Sam Kim, each of these shares will be worth up to $113 during the IPO.
Big Hit founder and CEO Bang Si-hyuk is the largest shareholder of the company with 43.44% shares.
According to the filing, the company plans to offer about 7.1 million newly-issued shares at an indicative price range of 105,000-135,000 won per share.
If registration between the Financial Services Commission and Big Hit Entertainment to enlist on the Korea Composite Stock Price Index goes smoothly, the BTS member will receive $7.7 million each, doubling their net worth of $8 million in 2019. Big Hit Entertainment plans to hold 1,426,000 shares, which means BTS will own 33.5% of the label and 6.7% of the total shares.
The company said that with BTS members owning part of its stock, they expect the partnership between the two to grow stronger both as artists and creators, the Herald’s Hyunsu Yim reported. BigHit in its filing also told investors that Jin will enlist in the military by the end of 2021. The company said it’s looking at options to minimize the risk of his absence from the group by pre-making albums and other content.
Big Hit Entertainment’s IPO is one of the most highly anticipated offering in South Korea this year.
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