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South Korea’s Huge Hit Leisure, the corporate that manages Ok-pop supergroup BTS, went public on Thursday at $236 per share, twice its preliminary public providing worth, to hit a price of $8.38 billion.
The IPO made Huge Hit founder and co-CEO Bang Si-hyuk a billionaire, and— on the highest share worth on Thursday—raised $20 million every for the seven members of BTS, who obtained an equal stake within the firm from Bang in August.
Huge Hit’s debut is South Korea’s largest listing in three years, raising round $840 million. BTS, arguably the largest musical act on this planet in the mean time, is chargeable for the overwhelming majority of Huge Hit’s income and generated a lot of the hype surrounding the label’s IPO.
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Huge Hit made $86 million in revenue final 12 months and was valued at $4 billion earlier than its Thursday debut. BTS accounted for nearly 90% of Huge Hit’s whole gross sales of $249 million within the first half of 2020, that means the label depends closely on the success of the band.
That dependence comes with dangers.
One concern is that the band members nonetheless want to finish the 2 years of obligatory army service required of all South Korean males. Jin, the oldest member of BTS, is nearing 28, the higher age restrict for conscription. The band’s legions of loyal followers—and some politicians—are calling for delays to BTS’s army service or the formation of an alternate choice, like working overseas to represent South Korean pursuits.
In August, BTS launched “Dynamite”—the group’s first music solely recorded in English—and it debuted at primary on the Billboard Scorching 100, changing into the group’s first U.S. primary single; it topped the charts in no less than 11 nations.
The worldwide success of BTS has been an financial boon for South Korea in addition to for Bang and the seven band members.
A December 2018 report by the Hyundai Analysis Institute estimated that BTS contributes round $3.5 billion to South Korea’s economic system yearly. The band’s contributions embody $1.12 billion in exports of BTS-related merchandise. The band can be chargeable for one in each 13 guests to South Korea yearly, as superfans attend live shows or make Mecca-like pilgrimages to the members’ homeland.
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