South Korean technology company Galaxy, specializing in the development of artificial intelligence-based software for the K-pop industry, plans to conduct an initial public offering (IPO) on the Seoul and New York exchanges, writes xrust. The move underscores the company's desire to capitalize on global interest in Korean pop culture and the excitement around generative AI.
South Korean startup Galaxy, which occupies a unique niche at the intersection of artificial intelligence technologies and the entertainment industry, has officially announced its intention to enter the public capital markets. Galaxy is considering a dual listing on the Korea Exchange (KRX) and a U.S. exchange, presumably NASDAQ, within the next 12 to 18 months, according to sources familiar with the company's plans.
Galaxy's core product is an innovative AI platform that allows production centers to optimize the content creation process: from generating visual effects and digital avatars to voice synthesis and analyzing trends in social networks. In a highly competitive K-pop industry where speed of content release is critical, Galaxy's solutions have become sought after by major labels.
“We see huge potential in combining advanced machine learning algorithms with the unique aesthetic of K-pop,” Galaxy’s CEO said in an interview with Bloomberg. According to him, going public in New York will provide the company with access to a global pool of investors and the resources necessary for large-scale expansion into Western markets.
Analysts note that the choice of New York as the second site is strategic. The success of companies like Coupang has shown that South Korean tech giants can expect strong valuations in the US. For Galaxy, the New York listing will confirm its status as an international player in the DeepTech space.
It is expected that the funds raised will be used for further research in the field of generative AI, expanding the development team and opening offices in the US and Europe. The company also plans to invest in creating its own virtual artists who can interact with fans in real time.
Despite the optimism, experts warn about the risks associated with the high volatility of the AI sector and the specifics of regulating copyright for content created by neural networks. However, the steady rise in popularity of the Korean wave (Hallyu) and the shortage of quality AI tools for the creative industries create a favorable backdrop for the upcoming placement.
Galaxy has already begun preliminary consultations with investment banks. The exact parameters of the IPO, including the offering size and target valuation of the company, have not yet been disclosed, but analysts predict that the startup could be valued at more than a billion dollars, making it the new “unicorn” in the South Korean technology sector.
Based on materials from https://www.bloomberg
Xrust South Korean AI startup Galaxy plans a double IPO in Seoul and New York amid K-Pop boom
