SEOUL – The management company representing K-Pop band BTS doubled the value of its shares on the first day of trading on Thursday.
Big Hit Entertainment, the music production company behind the popular South Korean band, completed its long-awaited IPO with a capitalization of around $7.6 billion.
The company’s shares fell by 4.44 percent on Thursday on the Seoul Stock Exchange from an initial price of 270,000 won ($235).
Its closing price of 258,000 won practically doubled the 135,000 won per share set at its IPO, the second-highest of the year in Seoul, after attracting around 58 trillion won in orders.
Big Hit shares shot up by around 30 percent, the daily maximum allowed, before gradually losing steam and the benchmark index was left at 0.81 percent.
The market capitalization of the company put it in 32nd position by volume of companies quoted in Seoul.
It also surpassed the combined capitalization of the three other major K-Pop producers SM Entertainment, YP Entertainment and JYP Entertainment, placing it at the forefront of South Korean content exports, a phenomenon that continues to grow thanks to the global success of the Asian country’s music, films and series.
The music label is also estimated to have captured around 962.6 billion won with its IPO.
Its launch on the market was eagerly awaited in Seoul this year given the growing global popularity of its star group BTS.
The boy band gave two online concerts last weekend which more than 100 million fans from around the world tuned in to watch.
Big Hit was founded in 2005 by producer Bang Si-hyuk, who in 2013 launched what for years was his only band on the roster, Bangtan Sonyeondan (Bulletproof Boy Scouts in Korean), and would eventually become known worldwide for their acronym BTS.
K-pop was born in the 1990s thanks to a government initiative and exploded in 2012 when the catchy song Gangnam Style by rapper PSY (Park Sae-yang) became an international megahit.
Before the music genre exploded into the international scene there was already a growing international fanbase of K-dramas (Korean television drama series).