The recent news that the music label behind K-pop sensation BTS was going public thrilled not only market watchers and investors but also the boy band’s fans around the globe, collectively known as “Army.”
While Big Hit Entertainment is anticipated to be listed on South Korea’s main bourse, Kospi, in October, there are two ways that potential retail investors can acquire the entertainment management agency’s stocks -- putting in preorder deposits for a public subscription via underwriters’ accounts or buying shares during the local trading time after listing.
In order to purchase shares, a potential investor first needs to open a personal securities firm account.
Foreigners living here need to visit a nearby brokerage office along with an alien registration card or record of entry to Korea, and a Korean bankbook.
Korean nationals, on the other hand, are simply required to open an account via a local brokerage firm’s mobile trading system or home trading system.
Those who wish to make deposits for public subscription should make sure to open an account under one of the underwriters -- NH Investment & Securities, Korea Investment & Securities, Mirae Asset Daewoo or Kiwoom Securities. Although JP Morgan is another lead underwriter, it does not accept retail subscription.
According to its regulatory filing, the company is offering 7.13 million shares at a price between 105,000 won ($88.32) and 135,000 won. The exact share price will be announced after carrying out the book building procedure for institutional investors. Retail investors will be able to participate in subscription on Oct. 5 and 6.
Foreigners who live abroad, as they cannot directly participate in the retail subscription, may choose to purchase shares after the market debut through their preferred local securities firm accounts.
They are therefore advised to open an account beforehand and exchange their currencies to the Korean won, as Big Hit is to be listed on the local market.
The local stock market trading hours are from 9 a.m. to 3:30 p.m. weekdays, excluding public holidays.
By Jie Ye-eun (yeeun@heraldcorp.com)
