Mamamoo’s agency to go public in November

Rainbow Bridge World, the South Korean entertainment agency behind all-female band Mamamoo, said Friday that it has filed a registration statement with the country’s financial watchdog and will go public on the nation’s secondary bourse, Kosdaq, in November.

According to the statement, the agency aims to issue 1.25 million shares. It plans to offer new stocks for public subscription at a price between 18,700 won ($15.80) and 21,400 won a share.

The book-building process, where an underwriter determines the initial offering price, will take place Nov. 5 and Nov. 8. The agency has picked Mirae Asset Securities as the main underwriter.

Rainbow Bridge World will use the fresh funds to build a content production center, including dance studios, recording studios and concert halls, the agency said. It also aims to seek synergy with content providers by purchasing their shares or through mergers and acquisitions.

Industry sources forecast that the company’s corporate value will increase in line with the growing popularity of Mamamoo and other K-pop groups, such as Oh My Girl and Oneus. It holds the rights to 2,100 songs as well.

The agency's on-year sales grew 33.6 percent to 37 billion won ($32 million) in 2020. Its annual earnings surged 48.6 percent to 7.6 billion won.

Founded in 2010, Rainbow Bridge World has two CEOs: Kim Do-hoon, its music producer, and Kim Jin-woo, its head of business management.

By Byun Hye-jin (hyejin2@heraldcorp.com)