The police are preparing to question Bang Si Hyuk, president of the Hybe Board of Directors, for accusations of fraudulent transactions linked to the company’s initial public offer (IPO), reported the officials of the sector on August 21.
According to investigators, Bang presumably missed the first investors, including risk capital companies, claiming that Hybe had no plans for an ipo, while simultaneously organized that the shares were transferred to a private equity fund connected to one of its associates. Once Hybe It became the public in 2020, the fund sold the actions with profit, with Bang who received 30 percent of capital gains based on pre-organized shareholder agreements.
Bang denied any deception, arguing that the investment-inclination terms the useful-sharing agreements were suggested by the same investors and that he acted within the boundaries of their requests.
Risk concerns in front of Hybe’s Ipo
In 2017, when Hybe It was still a great entertainment of success, its value was based almost entirely on the success of BTS. The group had already reached the international applause with songs such as I need you, DNAAND Spring dayBut the first investors remained cautious, in particular due to the compulsory military service of South Korea for BTS members.
At the moment, HybeThe leadership discussed that it ensures long -term foreign investments rather than an ipo. These are great global investors, such as SoftBank -style supporters, would have lightened the financial pressure in allowing the management to focus on growth.
The first investors come out between uncertainty
Despite BTSThe popularity of strong expansion, the concerns for sustainability and military service have pushed the first investors to sell their actions. Bang was in charge of finding buyers. Hybe contacted us and Japanese funds, but the negotiations launched. In the end, Stick Investment and Easton Equity Partners intervened. Stick has acquired 12.4 percent HybeThe pre-IPO shares in October 2018, followed by the purchase of Easton of 2.7 percent in mid-2019. At the end of 2019, the new main capital joined a participation of 8.7 percent.
To protect investors, according to what reported Bang accepted the clauses, ensuring the registry if an ipo did not keep 30 percent of future profits if he succeeded. In the end, investors collected enormous earnings, reaching their initial investments almost 20 times.
The explosive success of IPO and BTS
Contrary to the concerns of investors, BTS he continued to climb globally with milestones such as Boy with Luv In 2019 and Dynamite in 2020. BTS He became the first Korean act to say a solo concert at the Wembley Stadium and dominated the Billboard charts.
With private investments that dry out, Hybe Concerned with an ipo, selecting the subscribers in January 2020 and becoming public in October of the same year. The IPO was a triumph, with share prices that double the launch and the peak to almost 421,500 krw ($ 325) in 2021. Hybe subsequently renamed in 2021, positioning itself as a global entertainment power plant.
Some first investors who sold before IPO expressed regret, since their final agreements closed only two months earlier Hybe confirmed his selection of the undersigned. However, the insiders claim that no one could have foreseen BTSThe astronomical trajectory and early exits were simply risk management decisions.
Sources: AllkPop
