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Reports: BTS label Big Hit Entertainment preps IPO

By Lee Jong-hwa, UPI News Korea   |   Feb. 3, 2020 at 9:06 AM
In 2005, Bang Si-hyuk founded Big Hit Entertainment, which later launched K-pop boy band BTS. Photo courtesy of Big Hit Entertainment From left to right, RM, V, Suga, Jin, Jimin, Jungkook and J-Hope of BTS arrive for the Grammy Awards in Los Angeles on January 26. Photo by Jim Ruymen/UPI BTS performs on New Year's Eve in Times Square in New York City. File Photo by Corey Sipkin/UPI

SEOUL, Feb. 3 (UPI) -- Big Hit Entertainment, which manages K-pop megastar boy band BTS, plans to go public this year, a move that would make it the most valuable entertainment company in South Korea, according to reports.

Big Hit recently sent a request for proposal to Korean and global brokerage houses for an initial public offering, The Bell and Maeil Business News Korea reported Monday, citing unnamed sources.

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The list of RFP recipients was not disclosed. But the Bell reported that they are NH Investment & Securities, Korea Investment & Securities, Citigroup Global Markets and JPMorgan.

Big Hit hasn't confirmed -- or denied -- the news.

Based on the rising popularity of BTS, the seven-piece boy group, Big Hit chalked up $179 million in sales and $54 million in profits in 2018.

During the first six months of last year, its turnover amounted to $167 million for a profit of $33 million.

The company's value is expected to be between $2.5 billion and $3.3 billion.

Big Hit was founded in 2005 by Bang Si-hyuk, who owns a 48.1 percent stake in the Seoul-based label, which launched BTS in 2013. After the IPO, Bang would likely become a billionaire.

The second-largest shareholder is Korean online game publisher Netmarble, which holds 25.55 percent.

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