It is predicted that the market cap of Big Hit Entertainment, the agency behind BTS, will exceed 10 trillion KRW (~8,532,605,200 USD) and can reach a value of 14 trillion KRW (~11,945,647,280 USD) as it is about to be listed on the KOSPI. This will be more than triple the market cap of the Big 3 (SM, YG, and JYP) combined which currently has a combined market cap of 3.2 Trillion KRW (~2,700,000,000 USD).
According to financial analysts on September 23 KST, the market capitalization of Big Hit Entertainment is expected to reach around 10 trillion KRW. Some predict that the amount will reach up to 14 trillion KRW amid the consensus of various securities firms.
Big Hit Entertainment aims to launch its IPO and be listed on the KOSPI or the Korea Composite Stock Price Index next month. The initial public offering price of the 7.13 million publicly shares offered will be between 105,000 KRW and 135,000 KRW (~89.64 USD to ~115.26 USD) per share. The total initial public offering amount is expected to raise between 748.7 billion KRW (~639,000,000 USD) to 962.6 billion KRW (~822,000,000 USD).
The company will conduct a forecast for domestic and overseas investors from September 24th to the 25th. They plan to make a public offering next month from the 5th to the 6th.
According to the Shinhan Investment Corp report, the appropriate market capitalization of Big Hit Entertainment was estimated at around 10 trillion KRW. This is based on next year's estimated performance standards and is based on a 50 times price-to-earnings ratio (P/E ratio).
Although the three companies - JYP Entertainment, YG Entertainment, and SM Entertainment - are at a target of 40 times the P/E ratio, it was explained that Big Hit Entertainment has been given a premium considering the fact that it has ranked first in the comparative group and took in the consideration of the value of their Weverse platform.
Earlier, Hana Financial Investment predicted that Big Hit Entertainment's market capitalization would be around 14 trillion KRW. The appropriate share price was suggested at 380,000 KRW (~325 USD).
Such a market capitalization wound rank in the top 20 to 30 on the KOSPI. It is on par with SK Biopharm and Sinpoong Pharmaceutical, which are two IPO's that have recently gained attention and big gains.
Meanwhile, as securities firms are predicting higher prices for Big Hit Entertainment, some predict that the number of IPO's will increase in Korea.