KQ Entertainment (CEO Kim Kyu-wook) announced on the 15th that it has signed a contract with Mirae Asset Securities for the corporate public offering (IPO) coordination to actively pursue listing. According to the company, KQ Entertainment plans to reorganize its internal structure and begin preparations for the public offering with the goal of listing next year.
Founded in 2013, KQ Entertainment is a comprehensive entertainment corporation that produces artists targeting the global market, including ATEEZ and xikers. Rapidly expanding its global fandom centered in the United States and Europe, it is recognized as an emerging powerhouse amid the globalization trend of K-POP. In particular, ATEEZ achieved the milestone of reaching the top of the Billboard 200 chart with their second studio album in 2023, after first entering the chart in 2021. Following that, they secured their second Billboard 200 chart No. 1 with the mini album released last November. xikers also proved the global competitiveness of KQ Entertainment artists by achieving the record of having two albums within the top 100 of the Billboard 200 chart within a year of debut.
With this IP growth, KQ Entertainment has achieved remarkable performance growth. Sales increased from 46.4 billion won and operating profit of 4.4 billion won in 2022 to 65 billion won and an operating profit of 5.9 billion won in 2023, recording sales of 115.8 billion won and operating profit of 12.5 billion won last year. In just two years, sales increased by about 150%, and operating profit rose by approximately 184%. This growth is attributed to concert revenues, which surged by about 240% compared to the previous year, increasing its share of total sales from about 25% to approximately 49%.
ATEEZ, KQ Entertainment's flagship IP, is a K-POP boy group that debuted in 2018 and has recently successfully completed its world tour that began last year. Starting in Seoul, they visited Japan and North America before reaching fans across Europe.
In particular, 13 concerts were held in 10 cities across North America, attracting 200,000 spectators. Additionally, by being the first K-POP boy group to perform at the 'Coachella Valley Music and Arts Festival,' the largest music festival in the U.S., they proved their popularity in North America. ATEEZ also demonstrated its global influence in Europe, holding 14 performances in 9 countries since January of this year. In cities like London, England, and Berlin, Germany, they added more concert dates thanks to enthusiastic local fan responses. Notably, they achieved the remarkable feat of holding a solo concert at Paris's 'La Défense Arena,' with a capacity of around 40,000, becoming 'the first K-POP artist.'
The activities of xikers, who debuted in 2023, are also noteworthy. xikers is a '5th generation' K-POP boy group born from KQ Entertainment's rookie development system. Approximately six months after debuting in October 2023, they held their first world tour, visiting two cities in Japan and six cities in the United States by November. Starting in January last year, they successfully wrapped up a tour in Europe covering seven countries and two cities in Australia, becoming the first in their generation to complete a tour in Europe following the U.S.
With the efforts of ATEEZ and xikers, KQ Entertainment's performance growth is expected to continue. ATEEZ's new world tour will kick off in July this year, with stadium performances planned in five cities in North America. A stadium refers to the largest venue based on seating capacity. xikers is also set to embark on a new world tour starting in May, aiming to expand its global influence.
Kim Kyu-wook, CEO of KQ Entertainment, said, "Through the listing, we will create new growth drivers by producing not only ATEEZ and xikers but also various global artists," adding, "As we have selected Mirae Asset Securities as the lead underwriter, we will thoroughly prepare for a successful IPO."
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