[THE INVESTOR] K-pop powerhouse JYP Entertainment founder and Chief Communications Officer Park Jin-young is expected to gain more than 18 billion won (US$15.88 million) by exercising his preemptive rights to buy extra shares, according to sources on Nov. 12.
According to Financial Supervisory Service, Park has exercised his preemptive rights to buy 695,894 shares for 4,311 won apiece when the company issues new shares on Nov. 15. He has already paid 3 billion won for the fee required to exercise the rights, after having spent 120 million won to buy the rights in 2012.
JYP Entertainment founder Park Jin-young
His total gains have been estimated given the current JYP stock price, which is hovering at around 30,000 won.
Back in 2015, industry sources were skeptical that he could profit from exercising his preemptive rights, as the stock price dropped to around 4,000 won. However, the situation changed last year after the popularity of girl group Twice and boy band Got7 increased, boosting the stock price.
Park bought the preemptive rights for shares worth 3 billion won for 120 million won in November 2012 from financial investors including Atinum Investment. It allowed him to buy 556,276 shares of the company for 5,393 won per share and is dues to expire on Nov. 23.
Over the last five years, Park’s preemptive rights have been adjusted a few times, as the stock price dropped and the company went through major changes including M&As. Subsequently, changes were made to the preemptive rights that he has now exercised.
By Song Seung-hyun (firstname.lastname@example.org)