199 days ago • Posted by Charles-Henry Monchau

The roller-coaster ride of Big Hit Entertainment, the K-Pop South Korean stock

Since the trading on Big Hit Entertainment (352820.KS) began, the stock nearly doubled — from the IPO price of Won135,000 ($115) to Won270,000 ($236). From there they rose another 30% as the retail investors who had missed out on the lottery drove a trading frenzy. But by 9.15am, a downward march had begun. Big Hit shares are currently trading at about Won156,000. Big Hit’s up-down IPO aside, K-pop is a growing economic force. The combination of catchy tunes, synchronised dance routines, perfect skin and considerable social media savvy has brought in big money. The pandemic has also thrown up new opportunities. More than 7m fans tuned in to two online concerts held by the band this year after world tours were cancelled. However, even before a single Big Hit share changed hands, its IPO price already represented a valuation of nearly 60 times forward earnings. So maybe the sharp decline can be somewhat justified by a necessary valuation adjustment? - source: Source: FT 

#Stocks
Big Hit Entertainment (352820 KS)
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