The Chinese arm of South Korea’s biggest entertainment agency, SM Entertainment, is expected to list its shares in China following its partnership with Alibaba, a local brokerage said Thursday.
EXO (SM Entertainment)
The K-pop giant established two corporate entities, in Beijing and Shanghai -- both 100 percent owned by SM Entertainment -- through its subsidiary Dream Maker Entertainment in late 2015.
“Dream Maker has the possibility to go public on the stock market in mainland China or Hong Kong,” said Kim Chang-won, an analyst at Daewoo Securities.
As a part of its effort to expand its business in China, the home to K-pop groups such as EXO and Girls’ Generation, formed a strategic partnership with Chinese e-commerce giant Alibaba Group Holding last week.
Under the deal, Alibaba bought around $30 million worth of newly issued shares, gaining a 4 percent stake in the KOSDAQ-listed company.
“SM Entertainment will invite multiple Chinese media and entertainment companies as its shareholders like Alibaba,” Kim said.
(
hnpark@heraldcorp.com)
