However, these agreements were not disclosed during HYBEs IPO process.
HYBEs IPO succeeded in October 2020, with Bang and the PEFs reaping massive profits.
Bang reportedly received around 400 billion KRW in total from these PEFs as part of their earn-out agreements.
Such agreements between a major shareholder and PEFs are rare and controversial.
Therefore, it was not required to be disclosed in the securities registration statement.
Within a week, the stock had fallen to 150,000 KRW, less than half of its initial high.
The rapid sell-off by PEFs, which were not bound by lock-up periods, significantly impacted the stock price.
Neither the company nor the underwriters disclosed such agreements during the review.
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