Hybe Chairman Bang Si-hyuk Under Investigation for 400 Billion Won IPO Deals with PE Firms
Bang Si-hyuk, chairman of Hybe, is under investigation regarding 400 billion won earned through undisclosed IPO agreements with private equity firms in 2020.
Bang Si-hyuk speaking at podium
The agreements involved three private equity funds:
- STIC Investments (3.46 million shares acquired in 2018)
- Eastone Equity Partners
- Neumain Equity
Key details of the agreements:
- Included a 30% profit-sharing clause upon successful IPO
- Was not disclosed during the listing process
- Legal teams deemed it a private agreement not requiring disclosure
Market impact:
- First trading day: 11.17 million shares traded
- STIC's sales: Only 1.7% of total volume
- Stock price: 150% surge from 135,000 won offering price
- Week later: 60% price drop
Background context:
- Agreements made in 2018 anticipated BTS's military service
- PEFs requested put option as risk protection
- Bang used personal shares to protect company interests
- Multiple law firms confirmed no legal violations
Current situation:
- Regulatory bodies investigating implications
- Calls for increased transparency in high-profile IPOs
- Additional pressure from NewJeans potentially leaving Hybe's Ador
- Continued scrutiny of Bang's role and decisions
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Coachella crowd at night
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