BTS Making A Nice Living
• Shares of Big Hit Entertainment, the agency behind K-Pop superstars BTS, soared during their stock market debut on Thursday in Seoul.
As Variety reports, shares of Big Hit were initially offered at KRW135,000 apiece (about $118.00), but due to intense interest began trading at KRW270,000 per share (about $235.50). That gave the company a valuation of $8.38 billion (KRW9.6 trillion) and provided agency co-founder Bang Si-hyuk, with a 36% stake, a net worth of over $3 billion. By the end of trading the shares had slipped 4% from the opening number to finish at KRW258,000 (about $225.00) apiece. That still represents a 91% gain on the offer price. Some 6.5 million shares were traded on the first day, according to the Korean stock market operator KRX.
Each member of BTS, from which the agency earns some 90% of its revenues, had earlier received more than 68,000 shares. In a matter of moments on Thursday, the value of those allocations had doubled from $8 million (KRW9.18 billion) to $16 million (KRW18.3 billion). The frenzy surrounding the IPO was so intense it livestreamed on YouTube and other platforms.
And there’s more possible good news on the horizon for the newly wealthy members of BTS: the South Korean government hinted that it may be rethinking its compulsory military service system. Under current rules, every male under the age of 28 may serve for up to two years. Exemptions and deferrals have been given to Korea’s top athletes and classical musicians for their part in elevating the country’s reputation overseas, but to date, no K-Pop celebrities have been given exemption; however… Defense Minister Suh Wook said that a deferral could be possible for the seven BTS members.
