Listing of BTS' label may help 'turn around' South Korea's lackluster IPO landscape

BTS go to the Billboard Music Awards at MGM Grand Garden Arena on May 01, 2019 in Las Vegas, Nevada.

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SINGAPORE — The profoundly foreseen market introduction of Big Hit Entertainment, the music name behind South Korean K-pop megastars BTS, will move South Korea’s public posting scene away from customary parts, said Dealogic

“Big Hit’s IPO (initial public listing), it does bring some much needed diversity to the South Korean IPO landscape,” Romaine Jackson, head of Southeast Asia at Dealogic, told CNBC’s “Squawk Box Asia” on Tuesday.

“It’s traditionally been your technology names … your health-care names,” Jackson said. “To see some diversity coming to that sector mix, is very interesting … for the South Korean IPO market.”

On Monday, Big Hit Entertainment valued its stock at 135,000 South Korean won (approx. $115) per piece —the top end of the 105,000- 135,000 won per share extend before announced.

South Korea’s IPO market awakening

Jackson said the energy encompassing the posting of the kid band’s administration name has “brought a lot of fanfare and attention” to South Korea’s IPO market, which had been “asleep” so far this year.

As indicated by Dealogic, posting volumes in South Korea were down “roughly 20%” before Big Hit valued, he said.

The forthcoming IPO has “really helped to turn around” the pattern found in South Korean public postings, Jackson said. Preceding the arrangement, he included, South Korean postings were at a six-year low, notwithstanding the presence of huge liquidity in the market.

‘Amazingly dynamic’ worldwide IPO scene

Past South Korea, the worldwide IPO market is “extremely vibrant,” Jackson stated, refering to Dealogic figures.

“What we’re seeing is a really a hot, steaming IPO market,” he said. “Deals are also providing very strong returns and what we’re seeing … is a very strong and building pipeline.”

In September up until now, Jackson said there have been more than $40.3 billion in worldwide listings —”one of the largest months on record,” he said.

Also, Asia hasn’t been forgotten about, with new postings in the area excluding Japan “up significantly” too.

“Just last week, we saw $8.5 billion across Asia ex-Japan in new equity fundraising,” Jackson stated, including that the prior week saw nearly $7 billion dollars.

“Companies are definitely capital thirsty right now and they’re out there satisfying that thirst in the equity markets,” he said.