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Itemizing the BTS label can assist reverse South Korea's lackluster IPO panorama

BTS attend the Billboard Music Awards at MGM Grand Garden Arena on May 1, 2019 in Las Vegas, Nevada.

Frazer Harrison | Getty Images Entertainment | Getty Images

SINGAPORE – The highly anticipated market debut of Big Hit Entertainment, the music label behind South Korean K-pop megastars BTS, will turn South Korea's listing landscape away from traditional sectors, Dealogic said

"Big Hit's initial public offering brings much-needed diversity to the South Korean IPO landscape," Romaine Jackson, director of Southeast Asia at Dealogic, told CNBC's "Squawk Box Asia" on Tuesday.

"Traditionally your technology names … your healthcare names," Jackson said. "It's very interesting to see a certain diversity in this mix of industries for this South Korean IPO market."

On Monday, Big Hit Entertainment valued its stock at South Korean won 135,000 (approximately $ 115) apiece – the upper end of the previously announced range of 105,000-135,000 won per share.

South Korea's IPO market awakens

Jackson said the excitement surrounding the boy band's management label listing had "brought a lot of fanfare and attention to the South Korean IPO market that has" slept "so far this year.

According to Dealogic, listing volumes in South Korea declined "around 20%" prior to Big Hit, he said.

The upcoming IPO "really helped reverse the trend in South Korean public listings," Jackson said. Prior to the deal, he added, South Korean prices were at six-year lows despite the presence of significant liquidity in the market.

"Extremely lively" global IPO scene

Beyond South Korea, the global IPO market is "extremely dynamic," Jackson said, citing Dealogic figures.

"What we're seeing is a really hot, steamy IPO market," he said. "Deals also deliver very strong returns and what we see … is a very strong and empowering pipeline."

In September Jackson said it had listed more than $ 40.3 billion worldwide – "one of the biggest months in its history," he said.

And Asia wasn't left out, with the exception of new entries in the region Japan also "increased significantly".

"Just last week we raised $ 8.5 billion for new stocks across Asia excluding Japan," said Jackson, adding that nearly $ 7 billion had been spent the previous week.

"Corporations are definitely thirsty for capital right now and satisfy that thirst in the stock market," he said.

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