According to the Finance and Services Committee on November 22, BTS' agency Big Hit Entertainment is planning to file for an IPO in early 2019 and a preliminary screening on the Korea Exchange (KRX) in the second half of 2018. The company also hired a CFO for the intricate process and preparations for the initial public offering.

SEE ALSO: The likelihood of Big Hit Entertainment filing for an IPO grows thanks to BTS

Big Hit Entertainment, just like the name, is looking to become a big hit if they do go public in the near future.� The agency started off small, however, things are changing rapidly thanks to BTS' success. Last year, they had a sales figure of 35.5 billion KRW ($32.6 million), which is around 1/10th of SM's sales figure. However, Big Hit has shown tremendous growth every year and 60 billion KRW ($55.1 million) is being forecast for the sales figure this year.

It is said that several brokerage firms in Korea are competing fiercely to be the underwriter for the IPO.�Due to the fees, brokerage firms can make a lot of money on an IPO.

These firms can receive 2-3% of the gross proceeds with an interest rate of 1.25% per annum.� As a result, these firms and investors are all currently trying to get a hold of Big Hit Entertainment.�Some of the companies trying to be the underwriter for Big Hit's IPO include Korea Investment & Securities, Samsung Securities, and Mirae Asset Daewoo.

Using the funds raised from the IPO, Big Hit plans to expand the scope of its future businesses and also return some of the money it received from venture capital firms.