Thursday, October 22, 2020

Will This Bubble Go Okay-Pop?

The IPO of Huge Hit Leisure, the music label that represents boy band BTS, was oversubscribed by about 600 occasions. Shares will begin buying and selling subsequent week.



Photograph:

viacom/Reuters

By virtually any customary, the extent of enthusiasm for

Big Hit Entertainment

was extraordinary.

However that is South Korea, and the music label that represents red-hot boy band BTS was anticipated by some to see report demand from retail buyers in its preliminary public providing this week. The shares on provide have been oversubscribed by about 600 occasions. With buyers required to place down half their subscription as a deposit, brokers have been quickly left holding $50 billion, a few of it borrowed. That was sufficient to trigger ripples within the nation’s monetary system.

As spectacular as that sounds, investor demand did not match that for recreation developer

Kakao Games,


293490 -2.75%

which was greater than 1,000 occasions oversubscribed final month.

Okay-Pop is a large phenomenon and plenty of followers of the band, who name themselves ARMY, put up cash for sentimental somewhat than monetary causes. If the shares, which begin buying and selling on Oct. 15, match Kakao’s efficiency then followers and speculators alike will really feel like dancing—they now fetch 53,000 gained, equal to $45.98—greater than double their providing value of 24,000 gained.

The inventory market isn’t any videogame, although, and previous efficiency won’t be indicative of future outcomes.

Write to Spencer Jakab at [email protected]

Copyright ©2020 Dow Jones & Firm, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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