Big Hit Entertainment stock prices drop almost 25% since IPO, with concerns for further drop
Individual investors in Big Hit Labels ' prices are finding themselves with a big loss in their investment. The IPO price for Big Hit Entertainment was 135,000 KRW. On the first day, the stock traded for 270,000, but ended up trading at 258,000 KRW at the close of business day. On the second day, values fell even more to 205,000 KRW, which is a 22.29% drop. This is unsurprising, as investors who are sophisticated sell whatever shares that are not locked in for them at the high price of the IPO. They sold almost 3.1 billion KRW worth of shares to individual investors, who bought them at 4.04 billion KRW. However, in the process, the stock further dropped and private investors saw an loss averaging of 24%. Because initial institutional investors are locked into their stock for a month, it is predicted to drop even further - as stocks always do once the locked in shares are released, as it puts more shares on the market. Institutional investors have 35.7% of...