BTS agency shares double on stock market debut

SEOUL - Shares in the management agency of K-pop sensation BTS more than doubled in the opening minutes of trading on their stock market debut Thursday.

The initial public offering in Big Hit Entertainment was priced at 135,000 won ($118) per share but within minutes of the Kospi exchange opening, the stock was priced at 330,000 won.

The IPO of shares in Big Hit Entertainment saw staggering demand earlier, with the public section oversubscribed no fewer than 607 times and applicants receiving only a tiny fraction of their requests.

The firm's centrepiece asset BTS have risen to global stardom in recent years, cementing their prominence in the world's biggest music market in August with their all-English track "Dynamite" topping the US Billboard Hot 100. 

At the IPO price of 135,000 won ($118) per share, Big Hit would have a market capitalisation of 4.8 trillion won -- well over $4 billion, and more than Hanjin Kal, the holding company for the conglomerate that includes the South's flag-carrier Korean Air.

Big Hit founder and CEO Bang Si-hyuk is worth $1.4 billion at the IPO price, according to the Bloomberg Billionaires Index, and is retaining a stake of more than 36 percent of the firm. 

The flotation also boosts the band members' own wealth -- Bang gave each of them more than 68,000 shares in August, worth around $8 million at the IPO price and totalling 1.4 percent of the company.

Analysts expect the shares to rocket as soon as the market opens.

"Considering all the information about the firm now available, the IPO price could be the lowest price we will ever see," Park Sung-ho of Yuanta Securities told AFP.

Earlier this year, his company estimated Big Hit's enterprise value -- its market capitalisation plus accumulated debt -- at two to three trillion won, he said.

It has since raised it to 10 trillion won after assessing its business models including licensing sales, he added. 

- Military impact - 

But there is one inescapable hurdle looming for the newly listing agency: mandatory military service for all seven boy band members, who made their debut in 2013.

South Korea requires all able-bodied men to serve in uniform to defend it against security threats from the nuclear-armed North.

Under the existing conscription laws BTS member Jin -- real name Kim Seok-jin -- aged 27, will have to report for duty by the end of 2021.

The other six members, born between 1993 and 1997, will have to follow in the coming years.

South Korea is currently debating exemptions for stars such as BTS, who have been at the forefront of the Korean Wave cultural phenomenon in recent years and are estimated to generate billions for the country's economy.

But no such dispensations have so far been granted to pop stars, and if they are forced to leave the stage it could blow a hole in Big Hit's finances: BTS were responsible for 97 percent of its revenues last year, according to the IPO prospectus.

Big Hit acknowledged their anticipated absence as a "risk factor".

It is looking to expand activities such as "contents licensing sales" that do not require the artists' "direct participation" to try to cushion the blow.

But it acknowledged their time off-camera "could have a negative impact on the company's profitability and growth". 

Agence France-Presse

Excitement builds as S. Korea firm behind BTS nears IPO

SEOUL - Investors are anxiously awaiting as the South Korean entertainment company behind hugely popular K-pop boy band BTS plans its initial public offering next Thursday, with its market value expected to reach 4.8 trillion won ($4.14 billion).

As institutional investors sought a slice of Big Hit Entertainment shares, the company's IPO price has reached the top end of the range indicated by it earlier. As a result, the company is set to raise around 960 billion won from debuting on the Korea Exchange.

Seven members of the band, who are all in their 20s, will each receive shares worth 9.2 billion won.

Since its debut in South Korea in 2013, BTS has gone on to win many fans across the world with its synchronized dance moves and hip-hop songs as well as their beautiful melodies.

BTS's songs are known for lyrics that address social issues, one reason the group seems to resonate with many young people. The group topped the Billboard album chart in 2018 and reached the No. 1 on the Billboard Hot 100 songs chart this year.

For many years, South Korea's entertainment business had been dominated by three major companies. But Big Hit Entertainment, a relative new entrant to the market, had an operating profit last year larger than those of the three companies combined.

Most of its earnings come from businesses related to BTS.

The South Korean government has expressed hopes for increasing demand for BTS-advertised products and BTS-related tourism. The Ministry of Culture, Sports and Tourism recently estimated that its recent big hit single "Dynamite" would alone generate an economic effect worth 1.7 trillion won.

As is often the case with a South Korean boy band, however, mandatory military service hovers over the group members. That leaves a potential question mark on Big Hit Entertainment's post-IPO prospects.

Concern over the company's business prospects briefly arose when speculation grew that the group's oldest member, 27-year-old Jin, would soon serve in the military. South Korean men usually begin serving in the military before turning 28.

The company sought to quiet the chatter in early September, after it had announced its IPO plan, by saying that Jin's conscription could be postponed until the end of next year under a provision in the military service law.

The company is believed to be referring to a provision that allows people enrolled in graduate schools to postpone their mandatory service.

But all seven members will have to serve between 18 and 22 months in the military at some point, provided the law remains unchanged. That means the company will have to find a way to keep the group relevant while it lacks some of its members due to military duty.

-Kyodo News-

BTS launches music video of new single ‘Stay Gold’

MANILA – Big Hit Entertainment finally released the official music video of “Stay Gold” on Friday.

The track is the lead single of South Korean boy band BTS’ “Map of the Soul: 7 The Journey” album which is slated for a July release.

Two days since it was uploaded, the music video already garnered more than 36 million views on YouTube.

BTS is composed of RM, Jin, Suga, J-hope, Jimin, V and Jungkook.

Their other hits include "Boy With Luv," "Dionysus," "On" and "Fake Love."

Watch the full music video of “Stay Gold” below.


news.abs-cbn.com

S. Korea's boyband BTS suspends world tour over coronavirus

SEOUL --South Korea's K-pop boyband BTS will suspend their world tour over worries about the spread of the novel coronavirus and restrictions aimed at stopping it, their management said on Tuesday.

The seven-member band had already postponed the North American leg of the tour, that was scheduled to start on April 25, and cancelled a Seoul concert because of the coronavirus outbreak.

"Due to the nature of BTS concerts involving travel by thousands of international fans no matter where the performances are held, it is also difficult to resume the tour with the current strict restrictions on cross-border movement still in place," Big Hit Entertainment said in a statement.

"Therefore, we have made the difficult decision to suspend the previously announced tour schedule and develop a new schedule."

The suspension of the tour, which was due to include concerts in Europe and Japan, comes as the coronavirus pandemic has infected more than 3 million people globally, with countries imposing travel restriction and lockdowns.

Big Hit Entertainment said it would give details of a new tour schedule as soon as they were clear.

-reuters-

#BTSisBack trends on Twitter as K-pop superstars end break

Korean boy band BTS has ended its break from the music scene and resumed promotional activities, K-pop news website Soompi reported Monday.

A source from the band's agency, Big Hit Entertainment, confirmed the end of the group's "period of rest," according to Soompi.

The month-long pause was the first official break of BTS — or Bangtan Sonyeondan, which translates as Bulletproof Boy Scouts — since it debuted in 2013, Big Hit earlier said.

BTS flew out from Incheon International Airport early Monday for an overseas schedule, Soompi added.

Fans of the group, collectively known as ARMY, marked the end of the break with the hashtag #BTSisBack, which topped the list of Twitter trends in the Philippines and worldwide.

The septet is also preparing for a concert in Saudi Arabia on October 11 as part of its "Love Yourself: Speak Yourself" world tour.

The band will conclude the tour with a three-day concert at the Olympic Stadium in Seoul from October 27 to 29.

The K-pop industry is known for cutthroat competition and around-the-clock work hours that include concerts, press events and grueling singing and dancing training when the stars are offstage.

-- With a report from Agence France-Presse

source: news.abs-cbn.com

K-pop superstars BTS releases new Japanese single 'Lights'

South Korean boy band BTS released on Wednesday a new Japanese single, "Lights."

The song was released alongside the Japanese versions of "Boy with Luv," first released in April as part of the group's Korean extended play "Map of the Soul: Persona," and "Idol," a 2018 single from the album "Love Yourself: Answer."

"Lights" is an uplifting ballad where the BTS members describe themselves and listeners as each other's "light."

The music video, meanwhile, featured the members singing and interacting with one another inside a movie theater.

As of writing, the song's music video has garnered over 7 million views on YouTube.

BTS, or Bangtan Sonyeondan (Bulletproof Boy Scouts) in Korean, debuted in 2013 under Big Hit Entertainment. 

The group is composed of Kim Namjoon (RM), Kim Seokjin (Jin), Min Yoongi (Suga), Jung Hoseok (J-Hope), Park Jimin, Kim Taehyung (V), and Jeon Jungkook.

The group topped the US Billboard album charts twice in 2018 with "Love Yourself: Tear" and "Love Yourself: Answer," becoming South Korea's best-known and most valuable musical export.

source: news.abs-cbn.com