Big Hit Entertainment offered IPO subscriptions for retail investors

Big Hit Entertainment offered an Initial Public Offering (IPO) for subscriptions for retail investors. It gathered over 8 trillion won or approximately $6.9 billion of deposits on its first day.

South Korea-based entertainment agency, Big Hit Entertainment, opened subscriptions and is currently taking retail investors‘ applications.

The competition

According to NH Investment and Securities, one of the lead underwriters of Big Hit Entertainment calculated a total competition ratio from the four security companies. It recorded a total of 89.6 to 1 subscription.

The NH Investment and Securities recorded a 69.77 to 1 competition ratio. Moreover, Korea Investment and Securities recorded a 114.82 to 1 competition ratio. Meanwhile, Mirae Asse Daewoo and the subsidiary Kiwoom Securities registered 87.99 to 1 and 66.2 to 1 competition ratios.

The four companies

They recorded total subscription deposits between the four securities companies. They recorded total subscription deposits amounting to 8.6 trillion won or approximately $7.4 billion.

The highest deposit amount was Korea Investment and Securities, with 4.3 trillion won or roughly $3.7 billion.

Coming in second is NH Investment and Securities, with 3 trillion won or $2.6 billion. Mirae Asset Daewoo had 1.1 trillion won or $948.3 million. Lastly, Kiwoom Securities with 165.6 billion won or approximately $142.9.


Talking about numbers

Big Hit Entertainment is considered one of the biggest initial public offering deals in the country this year, and it has been compared to different businesses. However, its first-day success is being compared to the deposits of SK Biopharmaceuticals and Kakao Games Corporation.

SK Biopharmaceuticals recorded a total of 5.9 trillion won or approximately $5.1 billion. But fell behind Kakao Games Corporation with a record of 16.4 trillion won or $14.1 billion deposit on the first day.

The deposits may change, considering investors’ tendency to scope out the competition on the first day. Other investors prefer on the second day.

Is the prediction, right?

Big Hit Entertainment predicted that they would come close to the record that was set by Kakao Games Corporation. It made a historical record of total subscription deposits of over 58 trillion won (approximately $50 billion).

Through the process, the public offering price was set out to 135,000 won (approximately $116), and 1.4 million shares offered to retail investors.

Big Hit Entertainment on Korea Composite Stock Price Index

Big Hit Entertainment will list on the Korea Composite Stock Price Index on October 15. The Stock Market Division of Korea Exchange will have a standard index. The equivalent of the S&P 500 of the United States.

Big Hit Obtaining approximately 926.6 billion won or roughly $830 million through the IPO. Big Hit Entertainment’s market capitalization stands at around 4.8 trillion won or $4.1 billion.

Image courtesy of aminphotoz/Shutterstock

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