BTS made music history when it became the first K-pop band to top the Billboard Hot 100 chart with their blockbuster tune “Dynamite,” featuring lyrics penned in English. “Life is sweet as honey, yeah, the beat is cha-ching like money,” chant the 7-boy ensemble in a rap-like staccato. The rainbow-coiffed fellas scored another smash when their management company, Bit Hit Entertainment of South Korea, went public on October 15. But the act could have been a bigger monster, and loads more won would be cha-chinging, if BHE hadn’t struck the wrong note by underpricing its IPO.
According to news stories––the offering’s prospectus isn’t easily available in English––BHE pre-sold around one-fifth of its share to institutional investors and its legions of fans at the equivalent of $118. That underwriting, led by J.P. Morgan and two Korean banks, raised $840 million in cash.