SINGAPORE — Shares of Big Hit Entertainment, the music label of Ok-pop superstars BTS, soared as they made their market debut in South Korea on Thursday.
Big Hit Entertainment’s inventory opened at opened at 270,000 Korean received (approx. $236) per share on Thursday, in accordance with Refinitiv Eikon. That was double the inventory’s situation worth of 135,000 Korean received per share. Shares prolonged good points after the open earlier than weakening, final buying and selling greater than 97% larger than the difficulty worth.
South Korea’s leisure sector is “becoming global-scale,” Daniel Yoo, head of world funding at Yuanta Securities Korea, informed CNBC’s “Squawk Box Asia” on Thursday.
“We think that the entertainment industry will be very important industry for Korea for investor(s) to invest,” Yoo mentioned.
Still, the analyst admitted that Big Hit Entertainment’s present valuation “might be too expensive” as its current dependency on the South Korean seven-member boyband BTS is “very high.”
Big Hit Entertainment’s market debut got here on the again of different blockbuster IPOs akin to SK Biopharmaceuticals and Kakao Games that additionally noticed massive jumps on their first day of buying and selling.
“If you look at the overall IPO market, it’s really, really hot,” Yoo mentioned. Most traders in earlier public listings akin to SK Biopharmaceuticals “made anywhere between 100-200% returns on the presubscription if they can get the stocks,” he added.
Part of this was because of the “huge liquidity” being noticed in the South Korean markets, he mentioned.
The Bank of Korea at present has its base charge at a historic low at a time when main central banks globally have slashed rates of interest in a bid to help monetary markets through the coronavirus pandemic.