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BTS are now partial owners of Big Hit Entertainment, company aims to raise up to US$822 million in IPO this October

BTS are now partial owners of Big Hit Entertainment, company aims to raise up to US$822 million in IPO this October

Estimated:  reading

Apart from their recent success with ‘Dynamite’ topping Billboard’s Hot 100, as well as winning the MTV VMAs, the business side of things is also starting to look even better than before for BTS.

"WE, BTS, ARE NOT SEVEN; WE WILL BE THE STORY OF YOU, ME, AND OF US ALL." BTS STAY CONNECTED WITH FANS IN RECORD-BREAKING VIRTUAL CONCERT, MAP OF THE SOUL ON:E

In Big Hit Entertainment’s statement yesterday, it has been announced that the BTS members are now shareholders of the agency. Big Hit's shares are valued at 135,000 won (US $115) each and will raise 962.55 million won (US $822 million), making the company's value a whopping 4.8 trillion won (US $4.1 billion).

Big Hit unveils 2020 report, reveals future plans: new BTS album, BTS concert, TXT comeback, new idol groups, and more

Each member will be granted 68,385 shares, which comes up to about US$7.9 million after valuation. As such, the group will be in possession of about 35.5% of the label, and 6.7% of the total 7,130,000 shares. 

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Currently, Founder and Co-CEO Bang Si Hyuk is the largest shareholder with 43.55%, followed by gaming company Netmarble, which is founded by Bang’s cousin, Bang Jun Hyuk. 

On Monday (28/9), Big Hit Entertainment filed the biggest stock market listing in South Korea since July 2017. The move ultimately makes Bang a billionaire and the 7 BTS millionaires. The company officially goes public on October 15.

The increase in shares was finalised after BTS was described as the label’s “main artist”, being largely responsible for the majority of Big Hit’s earnings. After the coronavirus outbreak, the agency was said to have suffered from slightly lowered income due to concert cancellations – but managed to recover with album sales, which were up by 70%.

According to business reporter Yim Hyunsu, BTS “accounted for 87.7% of Big Hit's revenue during the first half of 2020, 97.4% during the whole of 2019 and 98.2% in 2018.”

He also said that following the rise in shares, the company believes the partnership with BTS would grow stronger as artists and creators. 

However, as Jin is due to enlist by the end of 2021, Big Hit is weighing their options and opportunities to reduce any risk posed by his absence, such as “such as pre-making albums and other content and working around the schedule flexibly with the bandmates who are available”. 

Here's what some ARMYs have said in reaction to BTS owning stakes in the company:

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