Stock Value Likely to Soar Following IPO
Big Hit Entertainment CEO Bang Si-hyuk gave 68,385 common stocks to each BTS member on Aug. 3. The value of their stocks is likely to soar once the entertainment company goes public.
At present, the initial offering price is expected to be fixed between 105,000 won and 135,000 won per share. The appraised value of each member’s stocks will become 9,322 million won if the price is fixed at 135,000 won. The company’s best-case scenario for its first day in the stock market is the opening price being twice the initial offering price and the closing price being its upper limit price for that day. In this case, the stock price will jump to 351,000 won per share and the appraised value will exceed 24 billion won.
Both Kakao Games and Big Hit Entertainment are expected to add to the popularity of initial offering stocks in the South Korean market. This is because SK Biopharmaceuticals increased the public awareness of such stocks and the stock market liquidity is at a record high now.