HB Entertainment, co-producer of hit TV series “SKY Castle,” has chosen an underwriter for its initial public offering on second-tier KOSDAQ market, according to sources on Feb. 28.

Details, such as the volume of fundraising through the IPO or the timeframe has yet to be determined, according to its underwriter Kyobo Securities.

“We sealed a contract with HB Entertainment as its IPO underwriter in mid-February,” a spokesperson at Kyobo Securities told The Investor.

HB Entertainment could not be immediately reached for comment. 

A poster for "SKY Castle"

Related:
Mega-hit ‘SKY Castle’ is a formula for killer contents

Aired through Korean cable TV network JTBC and Netflix, “SKY Castle” revolves around housewives’ desperation for success of their children in a glitzy neighborhood. Its TV viewership ratings came to 23.8 percent at its highest, an unprecedented figure among TV series aired through a non-free-to-air TV network.

Other than “SKY Castle,” HB Entertainment has also produced hit series including “My Love from the Star” and “My Daughter Seoyoung.” The firm is also in charge of producing the forthcoming series “Big Issue” starring actress Han Ye-seul.

HB Entertainment was founded in 2006 and has been the entertainment arm of family-run pulp product maker HB Corp.

Major shareholders of the company include its chief executive Moon Bo-mi who holds 49.88 percent, Hong Kong-based Huayi Tencent Entertainment that owns 23.27 percent and HB Corp. with 21.92 percent.

HB Entertainment’s equity capital came to 12.3 billion won (US$10.99 million), with retained earnings accounting for over 90 percent, as of end-2017. The company recorded a net loss of 38 million won in 2017, in contrast with 3.1 billion won net profit a year prior.

By Son Ji-hyoung (consnow@heraldcorp.com)