A ceremony on Oct. 15 marks the listing of Big Hit Entertainment, the management agency of K-pop sensation BTS, on the Korean stock market at the Korea Exchange in Seoul's Yeouido district. (Korea Exchange)

By Kim Hyelin and Yoon Sojung

Big Hit Entertainment, the agency that manages the K-pop sensation BTS, on Oct. 15 was listed on the country's benchmark Korea Composite Stock Price Index (KOSPI) in an initial public offering (IPO).

A ceremony that was livestreamed worldwide marked the event at the Korea Exchange in Seoul's Yeouido district, with Big Hit CEO Bang Si-Hyuk and his staff and exchange executives attending.

"This year marks Big Hit's 15th anniversary," the CEO said. "We began as a small entertainment company to comfort and impress the world through music and artists. Now we've become a global corporation with four labels, seven subsidiaries and about 1,000 employees."

"We won't forget our first commitment to give comfort for all through music and artists," he added. "We will vigorously progress as the world's best entertainment lifestyle platform company that can affect the lives of everyone alive today."

Soon after the opening bell, Big Hit saw its stock double in value and hit the daily ceiling price.

Based on the ceiling, the company's market capitalization reached an estimated KRW 11.88 trillion to rank 27th on the KOSPI.

With Bit Hit collecting KRW 58 trillion worth of IPO subscriptions last week, The New York Times covered the role of the BTS fan club Army in the agency's financial success in the article "BTS's Loyal Army of Fans Is the Secret Weapon Behind a $4 Billion I.P.O."

Mentioning the rabid devotion of the group's fans, the daily said, "Without their efforts, and those of a vast network of other hyper-dedicated fans, the Korean company that manages BTS, Big Hit Entertainment, would not now be a multibillion-dollar enterprise."

"What investors are really paying for is not necessarily the K-pop group or its management company, but its huge, highly connected ecosystem of followers."

The article added, "And as Big Hit’s I.P.O. approached, those with investment backgrounds started online chat groups to counsel less financially savvy fans on the ins and outs of investing in the company."

kimhyelin211@korea.kr