South Korean boy band BTS' music label Big Hit Entertainment has reportedly picked investment companies JPMorgan, NH Investment and Securities among others to oversee its initial public offering (IPO). According to several media reports such as The Financial Times and CNA, the IPO's total valuation is expected to be six trillion won (US$5 billion).
The Financial Times (FT) reported that the IPO is expected to be one of the largest in years in South Korea’s entertainment industry due to the global popularity of K-pop boy band BTS. The article also said that Big Hit Entertainment is looking to raise about Won 1.2 trillion (US$990m) which includes a sale of a 20% stake in a listing in the second half of the year. Currently, the entertainment company has reported a operating profit of Won97.5 billion for 2019, and said its sales doubled to US$500m last year, the FT report said.
The South Korean entertainment company was founded in 2005 and manages the global sensation band BTS. BTS’ popularity has heightened over the years and attracted several global brands to collaborate. Most recently, TikTok exclusively pre-released a clip of the title song “ON” from BTS’ highly anticipated new album titled “MAP OF THE SOUL: 7”. Slightly more than three hours after joining the platform on 25 September last year, the K-pop group’s account had a million followers.
Jumping on the K-pop hype, Mattel also partnered up with BTS to create dolls, collectible figures and games, among others. Under a multi-category license with BTS under its label, Big Hit Entertainment, Mattel launched the BTS-inspired toy line around the likenesses of the band’s seven members and the dolls will be fashioned in the looks from the BTS’ iconic “IDOL” music video.
The Korean band also previously made it to the cover of Time Magazine and became a worldwide sensation. The team of seven gained popularity over the past few years, collaborating with companies such as PUMA, Facebook and Coca-Cola.