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Shares in K-pop group BTS’ management label Big Hit drop after debut

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Shares in Big Hit Entertainment 352820.KS defied the pre-listing hype to dip on their first day of trade on Thursday, giving the management label of South Korean superstar K-pop group BTS a market valuation of 8.7 trillion Won (5.8 billion pounds).

Big Hit, which relies heavily on the boy band for revenue, doubled its initial public offering price to debut at 270,000 won per share, for a 9.6 trillion Won valuation. Shares surged by as much as 30 per cent in early trade before dropping back.

Analysts said the closing share price of 258,000 Won, still around 90 per cent above the IPO price, should be viewed as a more reasonable price based on fundamentals, rather than a sign of listing failure.

“The closing price is already around analysts’ average target price for 2022, based on estimations of profit increases,” said eBest Investment & Securities analyst Jina An.

Volatility in early trade – Big Hit topped the daily turnover list with 1.94 trillion Won worth of stock changing hands – was to be expected for such a large, high-profile listing, she added.

Analysts say Big Hit has proved itself online savvy, using Youtube, social media and online concerts for revenue generation since in-person performances were cancelled because of the coronavirus pandemic.

But concerns continue about Big Hit’s reliance on its star artists, which makes revenue especially vulnerable to any disruptions in output from key talent. BTS, which has a huge global following, accounted for 87.7 per cent of the label’s revenue in the first half of 2020, according to a regulatory filing.

“The industry is booming, but it’s also very cyclical, and undergoes a lot of fluctuations,” said Kim Hyun-yong, analyst at Hyundai Motor Securities, citing potential obstacles such as the country’s mandatory military service.

That service is looming for BTS, with the eldest member of the band currently required to sign up by the end of next year and the remaining six members over the following five years.

Some lawmakers and fans have called for the band to receive an exemption from or postponement of the roughly two-year commitment, arguing they are doing plenty for their country without wearing a soldier’s uniform.

Earlier this week, BTS faced a barrage of criticism in China after the band’s lead member made remarks about the 1950-53 Korean War.

BTS-related social media posts of big-name brands, including Samsung, FILA and Hyundai, subsequently disappeared from Chinese e-commerce platforms.

Thursday’s float made the band members instant multimillionaires, with each granted shares worth 17.6 billion Won ($15.39 million) at the closing price, but BTS’ official Twitter account did not reference the listing, focusing instead on the group’s win at the coinciding U.S. Billboard Music Awards for Top Social Artist.

Analysts said BTS’ successful online concerts and Big Hit’s unprecedented level of control over its revenue streams via its Weverse fandom platform that distributes BTS content and sells merchandise, differentiate the label.

“Although offline concerts are impossible for the time being, Big Hit’s results in the first half of this year show that the content and merchandise made profits; it was hardly affected on-year,” said KTB Investment & Securities analyst Nam Hyo-ji.

Big Hit founder and co-CEO Bang Si-hyuk said the company would continue “to research, challenge, discover innovative business models, and apply them to continue to grow in the global market.”

The listing added to heightened IPO activity in South Korea, with volumes rising 51per cent to $2.9 billion so far this year, compared with the same period last year, according to Refinitiv data.

The pipeline looks solid after government stimulus to boost the economy amid the coronavirus pandemic flooded markets with cash, analysts said.

Online game developer Krafton, and chat app operator Kakao’s 035720.KS mobile banking unit KakaoBank have both begun preliminary processes for listing.(Reuters/NAN)

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Kwara community under security cordon as Army goes after criminals

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Stephen Olufemi Oni, Ilorin

Kwara State Government has established immediate security cordon around Babanla, a community in Ifelodun Local Government Area, following a security breach by some armed criminals.

The criminals on Friday targeted a police station, attempted to loot a few grocery shops, and a hotel in the community before they were repelled by the security forces and bold members of the community.

In a statement on Friday, the government commended the Nigerian army, gallant policemen, and community folks for the swift response to the situation.

Governor AbdulRahman AbdulRazaq, who has been in constant touch with the security commanders and local vigilante, has directed sustained security lockdown of the axis to neutralise the threat and ensure public safety.

“While further briefings are awaited, the Governor reassures the public that concerted efforts are being made in coordination with the Office of the National Security Adviser, to cleanse the area of the criminals,” according to a statement.

“He also urges maximum support and asks the people not to panic as security forces conduct their operations in the area.”

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NUC Executive Secretary Lauds KU8+ Consortium as 1st of Its Kind in Nigeria

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Stephen Olufemi Oni, Ilorin

The Executive Secretary of the National Universities Commission (NUC), Professor Abdullahi Yusufu Ribadu, has commended the KU8+ Consortium for pioneering an initiative worthy of emulation by other universities in Nigeria.

Delivering the keynote address at the opening ceremony of the 3rd KU8+ Consortium International Conference at Kwara State University, Malete, Professor Ribadu noted that as Nigerian universities are facing growing challenges, such as limited financing and rapid technological changes, institutions need to rethink and expand their core values to meet current realities and societal expectations.

The NUC Executive Secretary, who was represented by former acting Vice-Chancellor of the University to Ibadan, Professor Adebola Babatunde Ekanola, commended the KU8+ for fostering local partnerships through resource pooling and shared expertise, stressing that such collaborations could produce graduates capable of transforming the nation’s economic landscape.

The NUC, he said, looked forward to learning from the outcomes of the consortium’s partnerships.

In her goodwill message, the Kwara State Commissioner for Tertiary Education, Hajia Sa’adatu Modibbo Kawu, reaffirmed the state government’s commitment to strengthening tertiary institutions through strategic investments and policy reform.

“The KU8+ Consortium is proof that collaboration breeds excellence. Kwara State Government, under Governor AbdulRahman AbdulRazaq, continues to invest in education in line with the Renewed Hope Agenda of President Bola Ahmed Tinubu”, she said.

The Chairman of the occasion and Pro-Chancellor of Kwara State University, Professor Abdulganiyu Ambali, OON, described the consortium’s emergence as proof of Kwara State’s growing role as a hub for human capital development.

In his opening address, the Chief Host and Vice-Chancellor of the University of Ilorin, Professor Wahab Egbewole, SAN, emphasised that no university can thrive in isolation.

He added that national development depends on constructive collaboration in teaching, research, innovation, and community engagement, which he said is one of the motivating factors for the KU8+ Consortium.

The host of the 3rd KU8+ International Conference and Vice-Chancellor of Kwara State University, Malete, Professor Shaykh-Luqman Alade Jimoh, emphasised that innovation and sustainability remain central to the KU8+ Consortium’s mission, stressing that the conference theme aligns with KU8+’s vision to collaborate, innovate, and develop society.

The conference, which had the theme “Innovation and Sustainability of Higher Education in a Changing World,” had lead papers presented by Professor Olutayo C. Adesina, a Professor of History at the University of Ibadan, who is also a British Academy Global Professor of History at the University of Manchester in the United Kingdom, and Professor Chinedum Peace Babalola, a former Vice-Chancellor of the Chrisland University, Abeokuta.

Professor Adesina’s paper titled “Mainstreaming the ‘Think and Do’ Initiative into Nigeria’s Higher Education in the 21st Century: Creating Structural Opportunities and Adding Value” challenged the KU8+ Consortium to focus more on being relevant on the local level before aspiring to regional level.

Professor Chinedum Peace Babalola, on her part, emphasised the importance of higher education institutions focusing on producing graduates with the abilities to solve societal challenges.

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Gunmen in military uniform abduct passengers in Benue

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Suspected armed men dressed in military camouflage have abducted at least four passengers from a commercial bus along the Otukpo axis of Benue State.

Zagazola Makama gathered that the incident occurred on Aug. 3 at about 10:00 p.m. near Mechanic Village in Otukpo, when a commercial Hummer bus, en route from Abia State to Otukpo, was attacked by the assailants.

Sources said that the gunmen, believed to be Fulani herdsmen, whisked away between four and five passengers to an unknown destination.

One of the passengers, Sandra Okoh, a resident of Otobi Akpa, managed to escape during the attack and was later found during a joint search and rescue operation by the Nigerian Troops.

She told the security forces that her husband, Okoh Mike, was among those abducted. She also alleged that the bus driver fled the scene with passengers’ luggage and failed to report the incident to any nearby police station.

The security forces have since launched a manhunt for the suspects and intensified efforts to rescue the kidnapped victims.

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