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(LEAD) Big Hit shares slide to new low after stock market debut

Stocks 16:32 October 26, 2020

(ATTN: RECAST headline; UPDATES throughout with closing price and details)

SEOUL, Oct. 26 (Yonhap) -- Shares in Big Hit Entertainment, the management agency behind K-pop phenomenon BTS, sunk nearly 10 percent Monday, hitting a new low since the company's market debut earlier this month, as investors question its proper valuation.

Big Hit shares slumped 9.57 percent from the previous session's close to 156,000 won (US$138), the lowest since its market debut, far underperforming the broader Korea Composite Stock Price Index's (KOSPI) 0.72-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.

In this photo provided by Big Hit Entertainment, the label's K-pop group BTS performs at the 2020 Billboard Music Awards on Oct. 14, 2020 (U.S. time). (PHOTO NOT FOR SALE)(Yonhap)

Monday's close marks a 55.56 percent drop from its peak.

The company's shares have ended lower for seven out of the eight sessions since its IPO.

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.

yunhwanchae@yna.co.kr
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