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Music label of K-pop superstars BTS makes a solid debut in ‘really hot’ IPO market

Music label of K-pop superstars BTS makes a solid debut in ‘really hot’ IPO market

Portions of Big Hit Entertainment, the music label of K-pop superstars BTS, took off as they made their market debut in South Korea on Thursday.

Big Hit Entertainment’s stock opened at 270,000 Korean won (approx. $236) per share on Thursday, as indicated by Refinitiv Eikon. That was twofold the stock’s issue cost of 135,000 Korean won for each offer. Offers expanded increases after the open before debilitating. It completed its first exchanging day over 90% higher than its issue cost.

South Korea’s amusement area is “becoming global-scale,” Daniel Yoo, head of worldwide speculation at Yuanta Securities Korea, told 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 said.

All things considered, the expert conceded that Big Hit Entertainment’s present valuation “might be too expensive” as its current reliance on the South Korean seven-part boyband BTS is “very high.”

South Korea’s ‘hot’ IPO market

Success Entertainment’s market debut returned on the of other blockbuster IPOs, for example, SK Biopharmaceuticals and Kakao Games that likewise observed huge hops on their first day of exchanging.

“If you look at the overall IPO market, it’s really, really hot,” Yoo said. Most investors in previous public listings such as SK Biopharmaceuticals “made anywhere between 100-200% returns on the presubscription if they can get the stocks,” he added.

Some portion of this was expected to the “huge liquidity” being seen in the South Korean business sectors, he said.

The Bank of Korea right now has its base rate at a notable low when significant national banks around the world have sliced loan costs in an offer to help money related business sectors during the Covid pandemic.

Topics #debut #IPO market #K-pop superstars BTS #Music label
Brenda Lloyd

Brenda Lloyd was born in Tuskegee Albama and educated at Kent state University. She has written across the National News. She worked as a manager for the global marketing department and recently she is working on Broadcastcover.com.

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