South Korean boy band BTS's label makes a strong debut in 'really hot' IPO market

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Shares of Big Hit Entertainment, the music label of K-pop superstars BTS, soared more than 100% in its market debut.

SINGAPORE — Shares of Big Hit Entertainment, the music label of K-pop superstars BTS, soared as they made their market debut in South Korea on Thursday.

Big Hit Entertainment's stock opened at opened at 270,000 Korean won per share on Thursday, according to Refinitiv Eikon. That was double the stock's issue price of 135,000 Korean won per share. Shares extended gains after the open before weakening, last trading more than 97% higher than the issue price.

South Korea's entertainment sector is "becoming global-scale," Daniel Yoo, head of global investment 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 to invest," Yoo said. Still, the analyst admitted that Big Hit Entertainment's current valuation "might be too expensive" as its present dependency on the South Korean seven-member boyband BTS is "very high."Big Hit Entertainment's market debut came on the back of other blockbuster IPOs such as SK Biopharmaceuticals and Kakao Games that also saw big jumps on their first day of trading.

"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.The Bank of Korea currently has its

 

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I hope those individual investors prior to Oct 15 KST IPO were actual fans...otherwise they are probably doing it for quick gains. Actual fans are long-term, stable investors that won't react to domestic and int'l events that drive prices down. BTS_twt

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Stocks in Japan poised to decline; BTS' label set to make market debut in South KoreaInvestors also await the market debut of K-pop superstars BTS' label, Big Hit Entertainment. BTS 🚀 BTS_twt SouthKorea
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