Seoul-based Big Hit Entertainment, the company behind superstar K-Pop group BTS (pictured), has been granted preliminary approval for an IPO by the Korea Exchange.
The company applied for a pre-IPO review with the Korea Exchange in May.
According to local rules in the country, firms looking to file for an IPO are required to enter into a consultation process to discuss the finer details of the filing.
As reported by the Korea JoonAng Daily, the Korea Exchange said on Friday (August 7) that Big Hit “fulfills the requirements to go public, making it eligible for an initial public offering [IPO]”.
Companies have six months after they pass the initial screening to file a registration statement with Korea’s Financial Services Commission, adds the report.
The Korea Economic Daily reported in May that Big Hit is planning to complete an IPO before the end of the year and that the firm is estimated to raise more than 1 trillion won ($810 million) through the IPO.
In February, the Financial Times reported that the company has chosen JPMorgan, NH Investment & Securities, and Korea Investment & Securities as the underwriters for an IPO.
In 2019, Big Hit’s revenue doubled from the previous year to $494.6 million and reached annual operating profits of $82m.
On February 4, at the ‘Big Hit Corporate Briefing with the Community’ in Seoul, the company unveiled business expansion initiatives for 2020 and revealed various successes across concerts and IP last year.
Big Hit Entertainment recently acquired a stake in Seoul-based K-Pop label Pledis Entertainment and is now the company’s largest shareholder.
The acquisition of the stake in the firm, which is home to K-Pop groups such as NU’EST and Seventeen, comes less than a year after Big Hit’s acquisition of Source Music and Seoul-based music game company, SuperbMusic Business Worldwide