Stock of South Korean Boy Band Manager Soars in Debut
The IPO in Seoul went off well despite a marijuana scandal involving band Big Bang as analysts cite a Korean pop boom.
NEW YORK - Shares of YG Entertainment Co., which manages South Korean boy band Big Bang, more than doubled on their first trading day in Seoul, Bloomberg News reported.
After the IPO of YG, which also manages a female quartet called 2NE1, its stock climbed despite a recent marijuana scandal involving Big Bang.
The strong start follows the stock market success of rivals S.M. Entertainment Co. and JYP Entertainment, whose shares have tripled this year amid the increasing overseas popularity of Korean pop, or “K-pop,” according to Bloomberg.
"Entertainment stocks are of hot interest among investors amid this K-pop boom,” Kwon Yoon Gu, an analyst at Dongbu Securities Co., told Bloomberg.
In its IPO, YG raised 42.4 billion ($36.6 million) won selling almost 1.25 million shares.