April 20, 2024

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[THE INVESTOR] Korean venture capital firm SV Investment, which racked up profits by investing in popular boy band BTS’ agency Big Hit Entertainment, is set to raise 27.3 billion won (US$24.51 million) in its impending initial public offering, according to the firm on June 26. 

The firm has set the price of 3.9 million new shares at 7,000 won, exceeding its indicative price range of 5,600 won to 6,300 won, due to strong demand from investors at home and abroad. 

Slated for July 6, the IPO on Korea’s second bourse KOSDAQ would value the VC at approximately 186.3 billion won. A total of 924 domestic and overseas institutional investors participated in the book-building process that was 786 times oversubscribed.

“Investors who participated in the book-building process gave a positive evaluation on SV Investment’s distinguished investment strategy and its successful records,” said an official at Mirae Asset Daewoo, the brokerage handling the deal. 

Through the IPO, the VC wants to expand its investments overseas, including in the US. It is seeking to launch a US$100 million fund along with US-based VC Kensington Capital Ventures. 

Among its diverse range of portfolio from IT to bio and health care, SV Investment is best known for its grand success with Big Hit Entertainment. 

Since 2011, the VC has invested 4 billion won in Big Hit Entertainment, when seven-member boy band BTS didn’t even debut. In April, it exited the fund, collecting more than 100 billion won in profits.

By Ahn Sung-mi (sahn@heraldcorp.com)