Shares of Big Hit, which manages K-pop group BTS, lose over a fifth

Shares in Big Hit Entertainment, the management agency of South Korean K-pop group BTS, fell as much as 22% on Friday, extending losses from its debut the previous day as prices eased after pre-listing hype, analysts said.

Shares in Big Hit, which relies heavily on the boy band for revenue, had dipped from its debut price on Thursday closing, but analysts said the lower price should be viewed as more reasonable, based on fundamentals.

Analysts said the company’s valuation based on its initial public offering price of 135,000 won per share was comparable to peers such as K-Pop agencies SM Entertainment and JYP Entertainment, and that its reliance on BTS for revenue caused market concern.

They said the share price, which fell as low as 200,500 won per share on Friday, seemed to be coming down to earth after a recent trend of overheated speculation into new offerings fueled its debut price, which was double the IPO price.

Big Hit‘s reliance on BTS is still absolute when including non-management indirect sales such as merchandise, intellectual property and contents,” said Kim Hyun-yong, analyst at Hyundai Motor Securities.

“It must make all-out efforts to create a post-BTS revenue source.”

Reuters

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.