SEOUL, June 25 (UPI) -- South Korean drug firm SK Biopharmaceuticals made a record-breaking Initial Public Offering (IPO) this week, brightening the outlook for other big-name companies in the waiting - including the entertainment label for BTS.
During the two-day retail tranche that ended Wednesday, orders for the company were oversubscribed by 323 times their allotted share. Deposit payments stood at $25.8 billion, according to underwriters.
The deposit payments, which should be 50 percent of the offering price, are bigger than the previous record of $25 billion for Cheil Industries' IPO in 2014.
Last week's institutional tranche was also 836 times oversubscribed, thanks to the growth potential of the drug manufacturer, which develops new medicines for various central nervous system disorders.
SK Biopharmaceuticals, an affiliate of South Korea's massive SK Group conglomerate, is scheduled to make its debut on the country's main stock market -- KOSPI -- on July 2.
The massive IPO success bodes well for other South Korean firms, especially amid lingering concerns that the COVID-19 novel coronavirus pandemic would have a massive effect on the economy and the country's IPO market.
But SK Pharmaceuticals' blockbuster flotation, which was underwritten by NH Investment & Securities and other brokerages, is a positive sign and a break from that narrative.
The management firm for K-pop group BTS - Big Hit Entertainment - strives to go public later this year, for example.
BTS' success in riding Billboard charts and building global fans is no doubt a good sign for Big Hit, which debuted the group in 2013.
Big Hit saw its sales almost double to $487 million last year from 2018, for instance, and its 2019 operating profit also jumped more than 20 percent year-on-year.
The company's value is expected to be up to $4 billion, marking another potential anchor in the South Korean economy, which has otherwise taken damage from the virus outbreak.