Reports: JPMorgan to handle BTS label Big Hit's IPO

SEOUL, Feb. 26 (UPI) -- JPMorgan and three other investment banks will help Big Hit Entertainment -- which manages K-pop sensation BTS -- go public this year, according to South Korean news reports.

The Seoul-based label picked JPMorgan, NH Investment & Securities and Korea Investment & Securities as lead managers for the listing, while Mirae Asset was chosen as a joint manager, according to the Chosun Ilbo and Yonhap News, which cited unnamed sources.

The initial public offering is expected to be one of the biggest in South Korea's entertainment industry, as BTS enjoys global popularity.

Big Hit, which was founded in 2005, debuted the seven-member vocal group in 2013, which eventually became the first K-pop musicians to win a Billboard music award in 2017.

After dropping their fourth studio album Map of the Soul: 7 on Friday, the band plans to start a new world tour in April.

The Hyundai Research Institute estimated last year that the value of Big Hit is between $1.16 billion and $2.07 billion.

However, its rising sales and profit prompts observers to raise the valuation to as high as $5 billion.

The label said earlier this month that it chalked up $495 million in 2019 sales, up 95.1 percent from a year ago. Its profit also surged 22.2 percent year-on-year to $82 million.

Founder Bang Si-hyuk owned a 43.06-percent stake in Big Hit as of the end of 2018. The second-biggest shareholder is South Korean online game publisher Netmarble, which held 25.55 percent.