rolezeira (rolezeira) wrote in omonatheydidnt,
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rolezeira
omonatheydidnt

Big Hit IPO postponed due to KRX request of additional data

The listing of Big Hit Entertainment, which had been widely expected to conclude the KOSPI this year, is facing difficulties. The Korea Exchange (KRX) has postponed the preliminary screening of public offerings requesting the submission of additional data. Considering the process of passing the screening and IPOs (Initial Public Offering), some predict that the listing of Big Hit will be delayed to early next year.

According to financial investment industry sources, on the 2nd, Big Hit received an official notice from the Korea Exchange asking for additional data.

The Korea Exchange received a preliminary application for Big Hit's IPO on May 28. According to the regulations for listing on the Korea Exchange, it is required to complete deliberations on listing within 45 days of receiving applications for preliminary screening.

Industry insiders are predicting that there will be an announcement of results of evaluation soon. Expectations were high as stocks related to DiPie surged 5.07 percent and 7.01 percent, respectively, on the 28th and 29th. However, with the news that preliminary screening for listing was delayed, DiPie plunged 9.02 percent on May 30. This reflects his disappointment that the listing is uncertain within this year.

Resuming the process of Big Hit IPO will be possible when additional data requested by the exchange is submitted. The Korea Exchange claims they cannot disclose what additional data was requested.

Considering Big Hit shows its sales structure centered on BTS, it is possible that the demanded additional data referred to their future growth potential since BTS members will start enlisting this year, which raises concerns.

"As the issue of BTS members entering the military remains, Big Hit was demanded additional data that can prove their growth and grounds for accurate corporate valuation" a financial investment industry source said.

Meanwhile, the market expects Big Hit to be worth 3 trillion won. Last year, Big Hit's operating profit stood at 98.7 billion won, higher than the combined operating profit of the three major Korean entertainment companies (SM, JYP and YG).

While preparing for the IPO Big Hit has been focusing on diversifying its sales portfolio and growing their operation by acquiring Pledis and Source Music.

Source: Metro News

Omona, do you think Lenzo & Sihyuk even know what they're doing or are they just clowns hanging on BTS' coattails?
Tags: big hit entertainment, bts
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