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omonatheydidSouth Korea’s YG Entertainment Co. priced its initial public offering above a marketed range, betting investors will overlook a marijuana scandal involving the boy band Big Bang as interest in Korean pop music grows.
Seoul-based YG, which manages the band, will raise 42.4 billion won ($37 million) in the initial stock sale by selling almost 1.25 million shares for 34,000 won each, the company said in a regulatory filing today. The label plans to list its shares on South Korea’s junior Kosdaq Index on Nov. 23, it said.
YG is aiming to defy a stock market slump and copy the success of listed rivals S.M. Entertainment Co. and JYP Entertainment Corp., whose shares have almost tripled this year amid increasing overseas popularity of Korean pop, or “K-pop.” Big Bang played to full stadiums in Japan and fans flocked to female quartet 2NE1, which is also managed by the company. The benchmark Kospi Index (KOSPI) has dropped 12 percent in 2011.
“YG’s offered price range was very attractive, and that drew hot interest from institutional investors,” Kim Shiwoo, an analyst with Korea Investment & Securities Co., said by phone. “While the recent marijuana scandal of its singer gives a bit of concern, investors seem to bet that the expected growth trend of the company’s earnings remains intact as it tries to do more business overseas.”
Retail orders for stock in the IPO will be taken on Nov. 14-15, YG said in today’s filing. The price was set above an offered range of 22,100 won and 28,800 won.
‘Strong’ Demand
Institutional investors at home and overseas showed “strong” interest in the share sale, YG said in today’s statement.
YG in October lowered its indicative range for the IPO from an original plan after G-Dragon, leader of Big Bang, tested positive for marijuana use, saying his drug use could be a “constraint” for the band’s activities for a while. Big Bang’s concerts may be delayed and revenue from commercials could fall, the company said.
G-Dragon, whose off-stage name is Kwon Ji Yong, accepted what he thought was a regular tobacco cigarette from a fan during a tour of Japan in May and took “two or three puffs” before throwing it in a toilet, the company said in a statement on Oct. 5.
Big Bang and its members accounted for more than half of the company’s total sales in 2010, YG said.
‘K-pop’
South Korean pop, or “K-pop,” acts promoted by S.M. Entertainment dominate the nation’s music charts. S.M.’s biggest boy band, Super Junior, and main female group Girls Generation were the top album sellers last year, according to South Korea’s Hanteo music chart.
Girls Generation’s videos, including “Run Devil Run,” and Super Junior’s “Mr. Simple” have generated tens of millions of views globally on Google Inc.’s YouTube. In France, hundreds of fans gathered in front of the Louvre on May 1, demanding S.M. hold another showcase of its artists in Paris after about 7,000 tickets for a June concert sold out in 15 minutes.
YG plans to use the proceeds from its share sale, arranged by Daewoo Securities Co., to increase its pool of new artists, add production staff and open offices abroad.
The company is headed by Yang Hyun Suk, a former member of Seo Taiji and Boys, a 1990s trio that mixed pop, rap, rock and techno to become cultural icons in Korea. Yang, 41, is YG’s biggest shareholder with a 48 percent stake. The company posted net income of 7.2 billion won in the first six months of this year, from 5.6 billion won a year earlier.
Source: Saeromi Shin @ Bloomberg
So at first the shares were supposed to be from 24,600 won to 32,000 and they were trying to raise 39.9 billion won. However, after GD's pot scandal they changed it to from 22,100 won to 28,800 and were looking for to raise 35.9 billion won. And now after EMA win they are offering the shares at 34,000 won and are planning to raise 42.3 billion won. Winning at EMA does pay off!
Seoul-based YG, which manages the band, will raise 42.4 billion won ($37 million) in the initial stock sale by selling almost 1.25 million shares for 34,000 won each, the company said in a regulatory filing today. The label plans to list its shares on South Korea’s junior Kosdaq Index on Nov. 23, it said.
YG is aiming to defy a stock market slump and copy the success of listed rivals S.M. Entertainment Co. and JYP Entertainment Corp., whose shares have almost tripled this year amid increasing overseas popularity of Korean pop, or “K-pop.” Big Bang played to full stadiums in Japan and fans flocked to female quartet 2NE1, which is also managed by the company. The benchmark Kospi Index (KOSPI) has dropped 12 percent in 2011.
“YG’s offered price range was very attractive, and that drew hot interest from institutional investors,” Kim Shiwoo, an analyst with Korea Investment & Securities Co., said by phone. “While the recent marijuana scandal of its singer gives a bit of concern, investors seem to bet that the expected growth trend of the company’s earnings remains intact as it tries to do more business overseas.”
Retail orders for stock in the IPO will be taken on Nov. 14-15, YG said in today’s filing. The price was set above an offered range of 22,100 won and 28,800 won.
‘Strong’ Demand
Institutional investors at home and overseas showed “strong” interest in the share sale, YG said in today’s statement.
YG in October lowered its indicative range for the IPO from an original plan after G-Dragon, leader of Big Bang, tested positive for marijuana use, saying his drug use could be a “constraint” for the band’s activities for a while. Big Bang’s concerts may be delayed and revenue from commercials could fall, the company said.
G-Dragon, whose off-stage name is Kwon Ji Yong, accepted what he thought was a regular tobacco cigarette from a fan during a tour of Japan in May and took “two or three puffs” before throwing it in a toilet, the company said in a statement on Oct. 5.
Big Bang and its members accounted for more than half of the company’s total sales in 2010, YG said.
‘K-pop’
South Korean pop, or “K-pop,” acts promoted by S.M. Entertainment dominate the nation’s music charts. S.M.’s biggest boy band, Super Junior, and main female group Girls Generation were the top album sellers last year, according to South Korea’s Hanteo music chart.
Girls Generation’s videos, including “Run Devil Run,” and Super Junior’s “Mr. Simple” have generated tens of millions of views globally on Google Inc.’s YouTube. In France, hundreds of fans gathered in front of the Louvre on May 1, demanding S.M. hold another showcase of its artists in Paris after about 7,000 tickets for a June concert sold out in 15 minutes.
YG plans to use the proceeds from its share sale, arranged by Daewoo Securities Co., to increase its pool of new artists, add production staff and open offices abroad.
The company is headed by Yang Hyun Suk, a former member of Seo Taiji and Boys, a 1990s trio that mixed pop, rap, rock and techno to become cultural icons in Korea. Yang, 41, is YG’s biggest shareholder with a 48 percent stake. The company posted net income of 7.2 billion won in the first six months of this year, from 5.6 billion won a year earlier.
Source: Saeromi Shin @ Bloomberg
So at first the shares were supposed to be from 24,600 won to 32,000 and they were trying to raise 39.9 billion won. However, after GD's pot scandal they changed it to from 22,100 won to 28,800 and were looking for to raise 35.9 billion won. And now after EMA win they are offering the shares at 34,000 won and are planning to raise 42.3 billion won. Winning at EMA does pay off!
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Date: 2011-11-11 12:19 am (UTC)ed; lol omg no one saw that hilarious typo.