KQ Entertainment Sets Sights on IPO with Global K-Pop Success

KQ Entertainment, led by CEO Kim Kyu-wook, has announced its plans to go public by signing an IPO management contract with Mirae Asset Securities. The company aims to list next year and is currently organizing its internal structure and preparing for the public offering.

Founded in 2013, KQ Entertainment is a comprehensive entertainment company known for producing popular K-Pop groups like ATEEZ and xikers. The company has rapidly expanded its global fanbase, particularly in the U.S. and Europe, establishing itself as a rising force in the global K-Pop scene.

ATEEZ made a significant impact by entering the U.S. Billboard 200 chart for the first time in 2021 and reaching the top spot with their second studio album in 2023. They achieved another Billboard 200 number one with their 11th mini-album released in November last year. Similarly, xikers have proven their global competitiveness by placing two albums within the top 100 of the Billboard 200 chart within a year of debut.

KQ Entertainment's impressive IP growth has been matched by remarkable financial performance. The company's revenue grew from 46.4 billion KRW and an operating profit of 4.4 billion KRW in 2022 to 65 billion KRW and 5.9 billion KRW in 2023. Last year, they reported a revenue of 115.8 billion KRW and an operating profit of 12.5 billion KRW, marking a 150% increase in revenue and a 184% rise in operating profit over two years. This growth is largely attributed to a 240% increase in concert revenue, which now accounts for approximately 49% of total revenue.

ATEEZ, a K-Pop boy group that debuted in 2018, recently concluded a successful world tour that began in Seoul and spanned Japan, North America, and Europe, connecting with fans worldwide.

In North America, ATEEZ performed 13 shows across 10 cities, attracting 200,000 attendees. They also became the first K-Pop boy group to perform at the Coachella Valley Music and Arts Festival, solidifying their popularity in the region.

In Europe, ATEEZ further demonstrated their global influence with 14 performances across nine countries starting in January this year. Due to overwhelming demand, additional shows were added in cities like London and Berlin. Notably, they became the first K-Pop artist to hold a solo concert at Paris's La Défense Arena, which can accommodate around 40,000 people.

xikers, who debuted in 2023, are a '5th generation' K-Pop boy group developed through KQ Entertainment's new talent system. Within six months of debut, they embarked on their first world tour, visiting two cities in Japan and six in the U.S. By January last year, they had successfully completed a European tour across seven countries and two cities in Australia, becoming the first 5th generation boy group to do so.

The agency announced that ATEEZ will kick off a new world tour in July, with stadium performances planned in five North American cities. xikers will also embark on a new world tour starting in May to further expand their global reach.

CEO Kim Kyu-wook stated, "Through the IPO, we aim to produce not only ATEEZ and xikers but also a variety of global artists, creating new growth engines." He added, "With Mirae Asset Securities as our lead underwriter, we are thoroughly preparing for a successful listing."

Reported by Ji-ye Choi, Ten Asia, wisdomart@tenasia.co.kr