South Korean boy band BTS backstage during the 61st Annual GRAMMY Awards at the Staples Center on February 10, 2019 in Los Angeles, California.
John Shearer | Getty Images Entertainment | Getty Images
SINGAPORE – The stocks of Big Hit Entertainment, the music label behind global K-pop phenomenon BTS, were valued at the high end of the range on Monday ahead of their highly anticipated market debut.
Big Hit Entertainment's share price was set at 135,000 South Korean won (approximately $ 115) apiece on Monday. That was at the high end of the previously announced range of 105,000 to 135,000 won per share. Big Hit is expected to make its market debut in October.
According to the filing, Big Hit will also raise Korean won 962.55 billion (approximately $ 820 million) through the offering. The share was oversubscribed 1,117 times by institutional investors, as the filing showed.
Entertainment stocks in South Korea rose on Big Hit's IPO price announcement. YG Entertainment's shares ended the trading day 11.98% higher, JYP Entertainment rose 9.94%, and SM Entertainment rose another 6.69%.
A recent Reuters report indicated that retail investor interest is likely to be high in Big Hit's IPO. BTS fans are reportedly trying to secure shares in the label.
Reuters also said that South Korean retail investor demand for new stock listings has been strong as markets are filled with cash following the government's efforts to prop up the coronavirus-hit economy.
South Korean video game publisher Kakao Games made a blockbuster market debut in early September, and stocks rose the 30% daily limit on their first day of trading.
– CNBC's Chery Kang contributed to this report.