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SEOUL, Oct. 5 (Yonhap) -- Big Hit Entertainment, the management agency of K-pop superstars BTS, attracted a promising amount of deposits from retail investors on the first day of a two-day subscription for its initial public offering (IPO) next week, probably the biggest share sale on the local market.
The IPO subscription runs Monday to Tuesday, prior to the company's listing on Oct. 15.
Small investors deposited some 8.6 trillion won (US$7.4 billion) on the first day of their subscription.
IPO managers said Big Hit Entertainment shares up for grabs were oversubscribed by 69.77 to 187.99 times by retail investors as of 4 p.m.
Big Hit Entertainment put up 1,426,000 shares, valued at 192.51 billion won, for offering for retail investors. The shares account for 20 percent of the company's total offering this time. Its IPO was set at 135,000 won.
The agency has been dubbed one of this year's three big IPO deals in South Korea, along with biopharmaceutical blue chip SK Biopharmaceuticals and mobile game giant Kakao Games.
Last month, investors chipped in 58.5 trillion won in Kakao Games' subscription deposit, the most in South Korean IPO history.
Some experts forecast that Big Hit Entertainment, the creative nest of BTS, may break the game publisher's record subscription.
The firm's annual sales almost doubled to 587.2 billion won last year, with an operating profit of 98.7 billion won.
Brokerage houses' forecasts vary over how the company will perform in the pandemic-hit entertainment markets.
In late September, the agency decided to switch BTS' "BTS MAP OF THE SOUL ON:E" concert to an online event.
Some brokerages noted that virus risks will have limited impact on the agency, as BTS has accumulated rich experience in online activities.
BTS accounted for 98.2 percent of the agency's annual sales in 2018 and 97.4 percent in 2019, according to the agency's data.
Big Hit Entertainment has built up its own K-pop empire since it was founded in 2005 by former JYP Entertainment producer Bang Si-Hyuk.
Upon the company's market debut, Bang will become the 14th-richest stockholder in South Korea.
As the company's largest shareholder, the agency chief holds a 36.6 percent stake valued at about 1.67 trillion won.
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