BTS' Label Big Hit Entertainment Doubles Stock Price Before Seeing 63% Plummet In Second Day of Trading
A rollercoaster of an IPO for the K-POP management company.
Last month, Big Hit Entertainment — the label behind K-POP sensation BTS — announced its plans for the biggest initial public offering in South Korea over the past three years. Trading for the company’s shares commenced yesterday, which saw its stock price more than double before sharply plummeting by more than 60 percent over the course of just two days.
In terms of numbers, the talent management company managed to raise $840 million USD through its IPO, with shares priced at 135,000 won (approx. $117 USD). During its first day of trading, share prices opened at 270,000 won, doubling the IPO price while continuing to surge until it peaked at 327,500 won (approx. $285 USD). The cash out from the surge, along with worries of the company’s over-reliance on BTS alone, caused share prices to sharply plummet before closing, a trend that continued throughout the second day of trading. At the time of writing, Big Hit Entertainment has experienced a staggering 63 percent drop from its peak, reaching 200,500 won (approx. $174 USD), though still sitting above its IPO price.
For more business-related news, Forbes has released its latest list of richest self-made women in the U.S.
