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| Shares in Big Hit Entertainment, the agency for K-pop boy band BTS, continued to sink Monday. Yonhap |
Shares in Big Hit Entertainment, the management label behind K-pop phenomenon BTS, continued to sink Monday, reaching a new low since the company's market debut earlier this month, as investors question its proper valuation.
As of 2:13 p.m., Big Hit shares slumped 7.83 percent from the previous session's close to 159,000 won (US$140), the lowest since its market debut earlier this month, far underperforming the broader Korea Composite Stock Price Index's (KOSPI) 0.25 percent loss.
Big Hit's plunge follows its roller coaster market debut on Oct. 15, when its stock price jumped to 351,000 won from its 135,000 won initial public offering price, only to close the session down 4.44 percent.
Big Hit shares have since plummeted, with some analysts cautioning that its IPO price may have been hyped.
Some analysts expect the company's stock price to turn higher on increased profitability.
"Considering its major artists' activities to start again after the IPO, net income in 2021 could reach 100 billion won even by conservative estimates," Ahn Jin-ah, an analyst at eBEST Investment Securities, said. Big Hit reported a net income of 72.4 billion won in 2019. (Yonhap)
