Korean stock prices 'irrationally high', warn bankers, as Big Hit launches IPO

By Jonathan Breen
17 Sep 2020

Big Hit Entertainment, the label behind hugely popular K-pop boy band BTS, this week launched bookbuilding for an IPO that will be worth as much as W962.6bn ($818.4m). The company is the latest to ride a wave of demand sweeping the country’s stock market, causing an over-heating that is pushing prices dangerously high, said bankers. Jonathan Breen reports.

South Korean game developer Kakao Games pulled off a scorching IPO earlier this month, raising W384bn. The deal drew demand at a rate of 1,479 orders for each share in the retail tranche — the highest ever rate of retail competition for a Korean IPO, while institutional ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial