K-pop stars BTS' management Big Hit Entertainment to raise $800m in float

The management team behind the K-Pop group which became the first-all-South Korean act to top the US singles chart is to raise $800 million in an IPO.

Big Hit Entertainment, the management label of hugely popular South Korean K-Pop group BTS, plans to raise up to 962.6 billion won ($811 million) in its planned initial public offering it said in a regulatory filing.

The update came just a day after BTS topped the US Billboard singles chart with their English single Dynamite. The group said they were in tears and thanks their fans, known as ARMY, for helping them achieve the landmark. Dynamite is their first song sun entirely in English and was streamed 33.9 million times in the US in its first week.

Big Hit today said it plans to offer about 7.1 million newly-issued shares at an indicative price range of 105,000-135,000 won per share. The listing is expected to occur in October.

Last month, Big Hit reported 49.7 billion won in half-year profits as its online concert and merchandise sales more than offset event cancellations during the COVID-19 pandemic.

The float of the private company is one of the most highly anticipated IPOs in South Korea this year as retail investors bet on the growth of K Pop and streaming. Advisers JPMorgan, NH Investment & Securities and Korea Investment & Secutiries, as well as Mirae Asset, are reportedly working on the float. BTS has also restructured its senior management team ahead of the listing.

The genre has gained increasing popularity in the West with BTS at its forefront – they sold out London’s Wembley Stadium last year.