Big Hit IPO makes BTS millionaires and their producer a billionaire

BTS

Hong Kong (CNN Business)All seven members of boy band BTS have become multimillionaires after their label, Big Hit Entertainment, pulled off South Korea’s biggest stock market listing in three years.

The K-pop label is issuing its shares at 135,000 won ($115) each, Big Hit said in a filing on Monday, raising 962.55 million won ($822 million) and valuing the company at 4.8 trillion won ($4.1 billion). That makes the deal South Korea’s largest stock offering since July 2017, according to data compiled by Dealogic.
The company is run by CEO Bang Si-Hyuk, a longtime music producer who is credited with creating BTS and setting it on the road to stardom in 2013. Bang owns about 43% of Big Hit, according to a stock exchange filing. The IPO has made Bang a billionaire.
Bang gave each of the BTS band members 68,385 shares in August. Those holdings are now worth nearly $7.9 million each at the issue price. The shares start trading on October 15.
Apart from confirming the fortunes of its founder and BTS, the Big Hit IPO gives retail investors a chance to get in on the action around the seven-member group, whose breakout success has been compared with that of the Beatles.
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