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As BTS cashes in on Big Hit Entertainment’s IPO, fans hope for a piece of the action too

The management company behind K-pop’s biggest supergroup will start trading on the Korea Exchange (KRX) next month.

As BTS cashes in on Big Hit Entertainment’s IPO, fans hope for a piece of the action too
[Photo: Cindy Ord/WireImage via Getty Images]

Now’s your chance to own a little piece of the world’s biggest K-pop phenomenon.

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Big Hit Entertainment, the Seoul-based management firm behind the boy-band sensation BTS, has just priced its soon-to-be-public shares at the high end of their expected range, a move that will transform the group’s members into multimillionaires and the company’s founder, Bang Si-hyuk, into a billionaire.

In a filing Monday, Big Hit said shares for its initial public offering would be 135,000 won, or $115, for a valuation of 4.8 trillion won, or $4.1 billion. The stock is expected to debut on the Korea Exchange on October 15, Bloomberg reports. Big Hit said it will raise about 962.6 billion won, or $820 million, from the IPO.

While Big Hit’s profits did take a hit in the first half of the year as the coronavirus pandemic wiped out live concerts, BTS has continued to impressively monetize their passionate base of Extremely Online fans, in part through live-streamed music events. As Rolling Stone reported in June, the group brought in upwards of $20 million during a single virtual show.

In recent years, Big Hit has also moved to become more of an all-inclusive platform for the music industry—a subsidiary of the company operates the social networking app Weverse, for instance.

The IPO is generating huge interest from retail investors, CNN reports, many of whom are presumably BTS fans who want in on the action.

Not everyone is so starstruck, though. As the Financial Times reported earlier this month, some analysts think Big Hit’s valuation is simply too high when compared against the company’s projected 2020 revenue. Only time will tell if the boys in the band can keep the momentum going for the long haul.

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About the author

Christopher Zara is a senior staff news editor for Fast Company and obsessed with media, technology, business, culture, and theater. Before coming to FastCo News, he was a deputy editor at International Business Times, a theater critic for Newsweek, and managing editor of Show Business magazine

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