K-pop band BTS's label scores investor hit with £3.2bn IPO

Okay-pop stars BTS have scored successful with South Korean traders after a hurry of call for for stocks in its control label noticed the corporate valued at £three.2bn.

Call for from institutional traders for a stake in Giant Hit Leisure approach it is going to be priced on the most sensible of the predicted worth vary in an preliminary public providing (IPO) subsequent month.

The be offering noticed call for 1,000 occasions upper than the collection of stocks to be had – in what’s South Korea’s greatest IPO in 3 years.

BTS on stage at Wembley stadium.

2019: Okay-pop megastars carry out at Wembley

It’s going to make tens of millions for the band’s seven contributors, who had been every given 68,385 stocks within the corporate by way of leader govt Bang Si-hyuk in August.

A regulatory submitting on Monday appearing sturdy call for approach stocks have now been priced at 135,000 received (£90) every, the highest of a spread introduced previous this month.

Additional call for is anticipated to come back from retail traders together with fanatical BTS fanatics determined to safe a stake.

The IPO will see 7.13 million new stocks in Giant Hit bought, elevating 963 billion received (£638m) and valuing the entire of the corporate at four.8trn received (£three.2bn).

Park Sung-ho, analyst at Yuanta Securities, mentioned Giant Hit was once “labeled as a type of international export company” with confirmed skill to make use of YouTube and social media for “good marketplace infiltration” in addition to its personal fan platform Weverse giving it “extraordinary readability and regulate over its income resources”.

In August, the corporate reported a 49.7 billion received (£33m) benefit for the primary part of 2020 as on-line live performance and products gross sales greater than offset the affect of match cancellations in the United States, Europe and Asia all the way through the pandemic.

K-pop band BTS
756,000 other people paid to observe a BTS live performance on-line in June

The corporate mentioned 756,000 other people globally paid to observe the gang carry out a web based live performance in June, an target market dimension equivalent to about 15 stadium live shows.

Giant Hit additionally sells products similar to illustrated books of lyrics, textbooks and video games and licensing together with merchandise bought by way of firms similar to Starbucks and Samsung.

It purchased two Okay-pop labels and established a 3rd as a three way partnership since closing 12 months, addressing marketplace issues that it must diversify its income streams past BTS.

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Ultimate 12 months, BTS changed into the primary crew because the Beatles to attain 3 primary albums in a 12 months at the Billboard 200 charts.

The band’s greatest hit, Dynamite, this 12 months made them the primary South Korean band to succeed in primary in The usa’s Sizzling 100 singles chart.

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