After Chuseok, Big Hit IPO... BTS Fans Loading Their Ammo

Big Hit General Subscription Dates October 5-6... Scheduled Listing Date October 15

'Bangtan Sonyeondan (BTS)' under Big Hit Entertainment (Photo by Big Hit Entertainment)

[Asia Economy Reporter Kum Boryeong] "I'm planning to open a securities account just because of BTS stocks."

Shin Mo (22), a university student and BTS fan, said on the 28th that she plans to open a securities account ahead of Big Hit Entertainment's IPO. She is thinking of buying one share of stock whenever she has some spare money once Big Hit enters the KOSPI market next month.

Shin said, "As an 'Army,' I collect almost everything like photocards, summer packages, winter packages, concert DVDs, and BT21 character goods," adding, "If I have stocks too, it feels like adding one more item to my collection of the oppas." She plans to buy Big Hit stocks with her part-time job earnings on special days such as BTS members' birthdays or BTS debut anniversaries. 'Army' is the official name of BTS's fan club. BTS's official Twitter followers and YouTube subscribers reach 29.33 million and 37.3 million, respectively.

There are also teenagers who pester their parents to buy Big Hit stocks. Office worker Oh Mo (38) said, "My sister's nephew is a middle school student, and he insisted on applying for Big Hit's general subscription after hearing about it somewhere, which made my brother-in-law sweat," explaining, "After explaining that over 100 million won is needed for the general subscription, they promised the nephew to buy 1-2 shares after observing the trend post-IPO." Oh also plans to give his nephew 100,000 won as pocket money this Chuseok to help buy Big Hit stocks.

Army members unanimously say they buy Big Hit stocks out of 'fan sentiment.' There is no big reason for buying the stocks. They buy them simply because Big Hit, which BTS belongs to, is going public. Searching for 'Big Hit stock' or 'Big Hit IPO' on social networking services (SNS) reveals comments like "Since I'm an Army, I think I'll buy one Big Hit stock," or "I want to add my share to Big Hit."

Even if Army members buy Big Hit stocks, they do not plan to sell them for capital gains. Unless they stop liking BTS and 'leave the fandom,' they intend to keep the Big Hit stocks. Online communities even joke that "If every Army in the world buys just one Big Hit stock, the stock price will be defended."

It is known that the demand forecast for Big Hit conducted on the 24th and 25th showed a competition rate of about 1100 to 1. The expected price range was 105,000 to 135,000 won, and the IPO price is expected to be at the top end of 135,000 won. A financial investment industry official said, "Most institutions participating in the demand forecast submitted bids at the top price, and some said they would buy no matter what the IPO price is." The general subscription for Big Hit is scheduled for the 5th and 6th of next month, right after the Chuseok holiday. The listing date is set for the 15th of next month.

Park Jongseon, a researcher at Eugene Investment & Securities, analyzed, "There are two investment points for Big Hit. One is that stable growth is expected through the expansion of the artist lineup based on fandom," adding, "The systematic management of fandom through Big Hit's three main business components (content production, diverse commercialization, and proprietary platform) is positive, currently securing about 360 million general fans." He continued, "Despite almost no concert revenue due to the COVID-19 situation, the first half performance is good," adding, "This is thanks to the online platform 'Weverse,' which provides various content based on subscription models and paid streaming, as well as a commerce platform."