YG Entertainment qualifies to enter KOSDAQ

[ashiva.livejournal.com]

As one of the top three entertainment companies in Korea, YG Entertainment has passed screening to go public on the KOSDAQ (Korea Securities Dealers Automated Quotations), a Korean stock market exchange equivalent of America’s NASDAQ. YG will be the 2nd entertainment company to qualify to be listed on the stock market, following SM Entertainment.

YG Entertainment passed the Stock Exchange Commission’s screening to go public on the KOSDAQ. The stock price is anticipated to be set around 24,600~28,800 WON (around $22 – $26 USD with a face value of 500 WON). Around 35 billion won (around $33 million USD) will be up for trade on the initial public offering.

For those of you with a keen memory, YG failed their initial screening process to be listed on the KOSDAQ in the 4th quarter of last year and applied for the process once again in under a year, successfully qualifying this go around with risen share prices.

With 2NE1 and Big Bang sweeping the charts and topping album sales, along with the total views of all YG related videos on Youtube hitting over 400 million (as of May 6th), YG Entertainment’s explosive sensation overseas was a key factor in their success.

Having top idols groups such as Big Bang and 2NE1, along with, Se7en, Psy, Gummy, and many other star musicians, YG Entertainment is a blue chip company as their sales in 2010 is estimated to be around 44.8 billion won (around $44 million USD), with 10 billion won (around $10 million USD) being net profit.

YG Entertainment’s future seems smooth, as well. Starting this year, Big Bang and 2NE1 will be expanding from the Korean scene to Japan and the U.S., leading the Hallyu wave. YG will also be breaking their operating system of producing only few elite trainees and expand their horizon as they have signed contracts with Kang Seung Yoon from “Superstar K2″.

YG Entertainment also has a good history of never having any conflict regarding contract disputes with their celebrities. Top celebrities Big Bang and Se7en have extended their contract for an additional 5 years without raising any issues. This leads back to founder Yang Hyun-Seok’s business philosophy of putting the future and priority on the artists’ before the company.

In an interview with OSEN, founder Yang Hyun-Seok explained, “I’ve had countless offers to sell shares of my company through a backdoor listing, but I pushed them all away. I have no intention whatsoever of making profit through the stock market. My reason to have YG Entertainment listed publicly is because I accepted the management’s advice to make YG a transparent and global company“.

Another plus is that YG has always lead in philanthropy and good works. YG was the first Korean entertainment company to donate 500 million won (around $500,000) to Japan’s earthquake cause. YG entertainment has caught attention because they donated a large sum of money to Japan despite the fact that their artists’ promotion in Japan have been delayed due to the earthquake.

Korean source: OSEN via Nate
Source: Allkpop

Comments

[rinn1e.livejournal.com]

Is there way for me to buy their stock from oversea? hehehehe.

[yolleh.livejournal.com]

Lol ikr?
Mama needs a new pair of shoes.

[fate-otaku.livejournal.com]

LOL IKR I want to buy some. xD

[k0dama.livejournal.com]

srsly, 10 stocks in YGE pls

[nortonamo.livejournal.com]

YG bought tumblr.

[frostedpopcorn.livejournal.com]

[czarny.livejournal.com]

Yang who.

[ashiva.livejournal.com]

http://lmgtfy.com/?q=Yang+Hyun-Seok

[kantamu]

Curious how far share prices will rise after IPO—and if/where they'll fall to after.

...there's no way to get this information in English, huh.

[ashiva.livejournal.com]

It's hard to say as based on YGE's history it seems like a fairly lucrative and certain investment, but on the other hand the plans for 2NE1 to take over the world as well as larger trainee amount will increase expenditure and thus risks, though of course they also might also bring in bigger profits if they succeed. If I had a chance and money I would definitely buy those stocks though.

[ashiva.livejournal.com]

As YG family fan I hope they keep a big majority share, so that they don't have to start listening that much of their share holders as I want to see lots of expensive MVs and big spending on music, artists and fashion etc. in the future too.

[5h0rtyy.livejournal.com]

mte

[http://users.livejournal.com/___sasuka/]

Dang. Korean music companies are really teeny in comparison to American ones. If even YG only makes $44mil a year, I shudder to think what the tiny one-idol-group companies make. Yikes.

[ashiva.livejournal.com]

Most of those big ones make only loss though.

[erbalurbal.livejournal.com]

what?

[ashiva.livejournal.com]

Due to bureaucracy, huge marketing expenses, piracy, and having a big amount of not very popular artists, etc. most of these big companies are making loss. See, for every Rihanna these companies have huge amount of artists that aren't selling that well and are making loss for the company. For instance in US artist has to sell about 500,000 albums in order to make profit because marketing and production expenses are so high. And not many artist can nowadays sell that amount.

[erbalurbal.livejournal.com]

marketing and productions costs for people like rihanna and lady gaga are much higher than costs for korean artists. One of Rihanna's videos probably cost more than all of SM's videos combined. The big companies don't make much compared to japan and the US but they make a big profit

[ashiva.livejournal.com]

With big companies I meant those big American companies, not small Korean ones like YG or SM. So small Korean ones make profit, while big American ones make loss.

[erbalurbal.livejournal.com]

oh ok I misunderstood, sorry.

[yolleh.livejournal.com]

It's such a small market that I thought $44mil a year was actually a lot.
We can't even begin to compare them to the American ones, they pretty much dominate the world.

[valieleen.livejournal.com]

Well Korea's market is A LOT smaller than the American one.

[audiograms.livejournal.com]

will invest

[erbalurbal.livejournal.com]

Now I see why he's cranking out so much music all of a sudden. At least now we know he will have to keep his time frames in check. You can't troll your shareholders and get away with it.

[dbil.livejournal.com]

Sorry, saving my money for Pandora which goes IPO next week. Sup peeps?!

[la-geni.livejournal.com]

I want to invest. *e-mails ibus professor*