Hybe Chairman Bang Si-hyuk Under Investigation for 400 Billion Won IPO Side Deals
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 major 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 if the IPO succeeded
- Was not disclosed during the listing process
- Deemed a "private agreement between shareholders" by securities firms
- Legal reviews determined disclosure wasn't necessary
Impact on stock performance:
- First trading day: 150% surge from 135,000 won offering price
- STIC's sales represented only 1.7% of total trading volume
- Stock price dropped 60% within first week
Industry insider explanation:
- Agreement made expecting BTS's military service before IPO
- Put option requested by PEFs as risk protection
- Bang used personal shares to protect company interests
- Multiple law firms confirmed no legal violations
The controversy has raised questions about transparency in high-profile IPOs, with regulatory bodies continuing to assess the implications of these undisclosed agreements. Additionally, Hybe faces further challenges with the recent announcement of girl group NewJeans planning to leave Hybe's Ador following Min Hee-jin's departure.
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