Big Hit Entertainment, the management label of South Korean superstar K-pop group BTS, hit the stock market with a 9.6 trillion won ($8.38 billion) valuation on Thursday before worries over its narrow revenue stream pulled shares below the debut price.
Big Hit, which relies heavily on the boy band for revenue, opened at 270,000 won — double its initial public offering (IPO) price — and surged by as much as 30% in early trade before dropping back to just under the list price.
Interest in South Korea's third-largest IPO of the year was high, with almost half of Big Hit's 10 million tradable shares changing hands on Thursday morning amid a weaker wider market, according to the Korea Exchange website.