YG delays and reduces IPO with G-Dragon marijuana use

G-Dragon [YG Entertainment]

YG Entertainment, managing the career of boy band Big Bang, has pushed back the date and size of its initial public offering (IPO) due to the group's leader G-Dragon testing positive for marijuana use.

A revised prospectus that YG submitted to the Korea Exchange yesterday said that orders for stock in the IPO will be taken on November 14 and 15 instead of the initially set dates of October 12 and 13 and offer 1.25 million worth of shares at 22,100 to 28,800 won instead of at 24,600 won to 32,000 won.

"The incidents revolving around our artists Daesung and G-Dragon of Big Bang may serve as constraints for the group's activities for the time being and affect business performance," YG explained of their decisions.

Daesung, the youngest member of the group, halted his singing career in May of this year when he got involved in a car accident where a motorcyclist died although a court later declared he is not guilty of the death. He is now set to resume his activities in December.

In the meantime, G-Dragon, real name Kwon Ji-yong, recently got caught for smoking marijuana in Japan which he smoked believing it to be a regular tobacco cigarette, YG had said through a statement earlier this month.

Although prosecutors suspended indictment on the singer, saying it was his first offence and he smoked an amount which was under punishable levels, it has undoubtedly tarnished the band's reputation in Korea and countries in Asia.

"It is hard to determine when G-Dragon or Big Bang will be able to pursue their activities normally due to G-Dragon's marijuana-related incident which could affect the activities of Big Bang, G-Dragon alone and GD&T.O.P," YG further said, referring to G-Dragon's solo and duo unit careers.

YG, one of the most successful entertainment firms in Korea founded by former Seo Taiji & Boys member Yang Hyun-suk, also manages the careers of top K-pop artists 2NE1, Gummy and Se7en.

YG has sought to go public since November of last year due to the strong performance of similar firms, including SM Entertainment and JYP Entertainment, following the heightened popularity of the Hallyu, or Korean Wave throughout Asia in the recent years.

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