COMPANY BEHIND S. KOREAN HIT BAND BTS SOARS IN TRADING DEBUT

South Korea's Big Hit Entertainment, the company that manages global pop sensation BTS, had a dynamite trading debut Thursday in Seoul, helped by the zeal of its loyal fans.

Big Hit's shares nearly doubled after their initial public offering netted more than $800 million. The strong start was widely expected by analysts given the huge fan base for the sevenmember boy band that has been dominating Billboard charts. Its market value stood at about $7.5 billion by the end of trading.

Despite the concertkilling COVID-19 pandemic, Big Hit has prospered thanks to huge demand for its online content, including livestreamed concerts of the band that reportedly attracted more than 1.7 million fans.

The company's shares opened at 270,000 won ($236), about double their initial public offering price. They surged 30 percent, hitting the daily trading limit, before falling back and closing at 258,000 won ($225).

Big Hit has a tight grip over its revenue streams, with BTS merchandise and other products exclusively sold through its “Weverse” ecommerce platform.

“The company has managed to grow beyond the traditional revenue sources of album sales and concerts and diversify its business through online channels,” wrote Ahn Jin-ah, an analyst from South Korea's E-Best Investment and Securities, in a report that described Big Hit's stock market entrance as a “drop of dynamite.”

BTS accounted for more than 80 percent of the company's revenue during the first half of 2020, according to a separate report by Samsung Securities.

BTS launched in 2013 and has a legion of global supporters who call themselves the “Army.”

It became the first K-pop act to top Billboard's Hot 100 chart last month with their first all-English song “Dynamite.”