September 04, 2020 12:21
Big Hit Entertainment, the talent stable that created boy band Bangtan Boys, also known as BTS, last month gave each of the seven members a big chunk of shares ahead of the company going public.
The global superstars were given 68,385 common shares each to "strengthen long-term partnership with major artists and boost morale," Big Hit Entertainment said in a regulatory filing.
The value of Big Hit Entertainment's stock is projected at between W105,000 and W135,000 per share through the IPO, making the boys multi-billionaires (US$1=W1,189).
Considering that their latest single "Dynamite" hit the No. 1 spot in the U.S. Billboard Hot 100 chart, the upper price estimate is more likely, converting into W9.23 billion worth of stock for each member.
Each has to pay at least W4 billion in gift taxes.
The present is more than fair since Big Hit Entertainment relies on BTS for a vast proportion of its earnings.
Retail subscription for the IPO starts in early October after demand from institutional investors has been assessed. The amount of stock for subscription will stand at an estimated W962.6 billion, which would put Big Hit Entertainment's market capitalization at up to W4.6 trillion.
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