Big Hit Entertainment Passes Preliminary Screening For IPO
Big Hit Entertainment has passed the preliminary screening for its planned initial public offering (IPO).
The agency has been approved for listing on the Korea Composite Stock Price Index (KOSPI). KOSPI is the index of all common stocks traded on the Stock Market Division of the Korea Exchange. It is the representative stock market index of South Korea and is considered the equivalent of the United States’ S&P 500.
According to the Korea Exchange (KRX), Big Hit received the results of their listing eligibility from the preliminary screening on August 7. If everything goes as planned, it appears that they will be listed on the stock market in the latter half of the year.
According to the KOSPI listing rules, from the day Big Hit received the notice of their preliminary results, they must submit an application for a new listing within six months and begin their registration process. They will be managed by NH Investment and Securities, Korea Investment and Securities, and JP Morgan. Korea’s largest investment banking and stock brokerage company Mirae Asset Daewoo will also serve as their joint advisor.
Big Hit Entertainment was first founded in February 2005 by producer Bang Si Hyuk and now houses BTS, Lee Hyun, and TXT. As of the day Big Hit submitted their preliminary application, Bang Si Hyuk holds 43.4 per cent of the company’s shares.
In the past year, Big Hit has acquired game company Superb and agencies Source Music and Pledis Entertainment, which house artists GFRIEND, SEVENTEEN, NU’EST, and more