Private individuals want to subscribe en masse to the IPO of Big Hit Entertainment, the Korean music label behind the K-pop sensation BTS.
BTS is extremely popular around the world, generating billions of dollars in revenue for the entire South Korean economy. The initial public offering of the label behind the boy band appears to be an equally big success, turning founder Bang Si-hyuk into a billionaire. The seven members of BTS become multimillionaires thanks to the stock exchange operation.
Big Hit Entertainment plans to launch 7.1 million shares at 135,000 won ($ 115) per share, giving the label a value of $ 4.1 billion.
A fifth of this is reserved for normal investors, the rest for institutional investors. Private individuals signed up for the equivalent of USD 50.2 billion. Demand was 607 times higher than supply, which means most ordinary investors get only a fraction of what they subscribed to.
BTS shares will be listed on the Korean Stock Exchange for the first time on October 15th.