Big Hit Entertainment has closed retail investor subscriptions for its initial public offering (IPO). Applications were taken from October 5 to October 6.

The total of subscription deposits gathered by Big Hit Entertainment’s four underwriters amounted to 58.4 trillion won (approximately $50.3 billion), and the average competition ratio was 606.97 to 1.

Big Hit Entertainment’s subscription deposits totaled to a number close to that of Kakao Games Corporation, which holds the highest record with 58.5 trillion won (approximately $50.4 billion). It also greatly exceeded that of SK Biopharmaceuticals, which recorded a total of 31 trillion won (approximately $26.7 billion).

Of the four securities companies that took subscriptions for Big Hit Entertainment, NH Investment & Securities, which was assigned 648,182 shares, recorded a competition ratio of 564.69 to 1. Korea Investment & Securities and Mirae Asset Daewoo were assigned 555,584 shares and 185,195 shares each and reached a competition ratio of 663.48 to 1 and 589.74 to 1, respectively. Kiwoom Securities, which was assigned the smallest number of shares, 37,039, recorded a competition ratio of 585.23 to 1.

Due to their high public offering price (135,000 won [approximately $116]), Big Hit Entertainment’s average competition ratio was much smaller than that of Kakao Games Corporation, which was 1,524.85 to 1.

Big Hit Entertainment gathered 8.6 trillion won (approximately $6.9 billion) in deposits on the first day, meaning it was on the second day that most of the deposits came flooding in.

Big Hit Entertainment will list on the Korea Composite Stock Price Index (KOSPI) on October 15. This is the index of all common stocks traded on the Stock Market Division of the Korea Exchange and the equivalent of the S&P 500 of the United States.

Source (1)

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