South Korea entertainment shares surge as K-pop sensation BTS' label prices IPO at top end of range
South Korean boy band BTS backstage during the 61st Annual GRAMMY Awards at Staples Center on February 10, 2019 in Los Angeles, California.John Shearer | Getty Images Entertainment | Getty ImagesSINGAPORE — Shares of Big Hit Entertainment, the music label behind global K-pop phenomenon BTS, were priced on Monday at the top end of the range ahead of their highly anticipated market debut.
Big Hit Entertainment's stock price was set at 135,000 South Korean won (approx. $115) per piece, according to a regulatory filing on Monday. That was at the top end of the 105,000-135,000 won per share range which was earlier announced. Big Hit is expected to make its market debut in October.
Entertainment stocks in South Korea popped on the back of the Big Hit IPO pricing announcement, with YG Entertainment up nearly 12%, JYP Entertainment higher by nearly 10% and SM Entertainment jumped more than 7%.
A recent Reuters report indicated that retail investor interest for Big Hit's IPO is expected to be strong, with fans of BTS reportedly looking to secure shares of the label.
Reuters also said demand among South Korean retail investors for new share listings has been strong as markets are filled with cash after government stimulus efforts to prop the coronavirus-hit economy.
Earlier in September, South Korean video game publisher Kakao Games saw a blockbuster market debut, and shares surged by the daily permissible limit of 30% on their first trading day.
— CNBC's Chery Kang contributed to this report.