SINGAPORE — Shares of Huge Hit Leisure, the music label of Okay-pop superstars BTS, soared as they made their market debut in South Korea on Thursd
SINGAPORE — Shares of Huge Hit Leisure, the music label of Okay-pop superstars BTS, soared as they made their market debut in South Korea on Thursday.
Huge Hit Leisure’s inventory opened at opened at 270,000 Korean received (approx. $236) per share on Thursday, in response to Refinitiv Eikon. That was double the inventory’s subject worth of 135,000 Korean received per share. Shares prolonged positive aspects after the open earlier than weakening, final buying and selling greater than 97% larger than the problem worth.
South Korea’s leisure sector is “turning into global-scale,” Daniel Yoo, head of world funding at Yuanta Securities Korea, instructed CNBC’s “Squawk Field Asia” on Thursday.
In case you have a look at the general IPO market, it is actually, actually scorching.
Daniel Yoo
Yuanta Securities Korea
“We predict that the leisure trade shall be essential trade for Korea for investor(s) to take a position,” Yoo stated.
Nonetheless, the analyst admitted that Huge Hit Leisure’s present valuation “may be too costly” as its current dependency on the South Korean seven-member boyband BTS is “very excessive.”
South Korea’s ‘scorching’ IPO market
Huge Hit Leisure’s market debut got here on the again of different blockbuster IPOs similar to SK Biopharmaceuticals and Kakao Video games that additionally noticed large jumps on their first day of buying and selling.
“In case you have a look at the general IPO market, it is actually, actually scorching,” Yoo stated. Most buyers in earlier public listings similar to SK Biopharmaceuticals “made anyplace between 100-200% returns on the presubscription if they’ll get the shares,” he added.
A part of this was because of the “big liquidity” being noticed within the South Korean markets, he stated.
The Financial institution of Korea at the moment has its base price at a historic low at a time when main central banks globally have slashed rates of interest in a bid to assist monetary markets throughout the coronavirus pandemic.