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Shares in K-pop group BTS’ management label Big Hit drop after debut
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: Security Team Kills Two Bandits, Rescues Two Kidnap Victims
Stephen Olufemi Oni, Ilorin
A security team, comprising operatives of DSS and forest guards, has rescued two victims of abduction in a forest between Oba Isin/Owa Onire area of isin and Ifelodun Local Government Areas of Kwara State.
The rescued victims are 16-year-old Fatima Azeez and Ibrahim Azeez who is five-year old.
The team also eliminated two armed bandits, while others escaped with severe injuries as the security forces stormed their hideouts, according to a report by DSS and local authorities.
The security team also recovered several items from the kidnappers, including one Ak-47 rifle; one single barrel; one fully loaded magazine with nine empty; mini-solar panel; and food items.
The rescue operation is connected to the multi-agency counterterrorism and anti-kidnapping efforts of the government.
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Kwara: Police Launch Investigations Into Killing Of Farmer On Farmland
Stephen Olufemi Oni, Ilorin
The Kwara State Police Command has commenced full-scale investigations into the killing of a farmer, Mr Azeez Garba, whose body was discovered on his farmland along the Owa-Onire axis, the boundary between Isanlu-Isin and Owu-Isin in Isin Local Government Area of the State.
The Commissioner of Police, Ojo Adekimi, described the murder as “cruel, senseless and unacceptable,” and directed the State Criminal Investigation Department (SCID) to intensify efforts to identify and arrest those behind the attack.
According to the police, preliminary investigations showed that the deceased left home for his farm in the morning but did not return, prompting his family members and local vigilantes to organise a search.
The search party reportedly found his motorcycle parked on the farmland before discovering his lifeless body a short distance away. Police said the victim had sustained deep machete cuts.
Reacting to the incident, CP Adekimi ordered investigators to deploy all available intelligence and investigative resources to unravel the circumstances surrounding the killing.
“The killing is cruel, senseless and unacceptable,” the commissioner of Police said, assuring residents that the command would leave no stone unturned in bringing the perpetrators to justice.
Although no suspect had been arrested as of Monday, the command said all available leads were being diligently pursued.
The police also assured the bereaved family, the people of Isin Local Government Area and the general public that investigators were working tirelessly to track down everyone connected with the crime.
“The Kwara State Police Command remains unwavering in its commitment to safeguarding lives and property across the state and will not relent until every person responsible for this reprehensible act is brought before the law,” the statement added.
The statement was signed by the Police Public Relations Officer, SP Adetoun Ejire-Adeyemi, on behalf of the Commissioner of Police.
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Kwara: Joint Security Team Arrests Alleged Cultist, Recovers Firearm
Stephen Olufemi Oni, Ilorin
A coordinated security operation involving the Kwara State Police Command, other security agencies and the Kwara State Polytechnic Security Unit has led to the arrest of a suspected cultist, Agboola Olamilekan, with a locally fabricated pistol recovered from him in Ilorin.
The operation, carried out as part of ongoing efforts to combat cultism and violent crimes across the state, was described by the police as another breakthrough in intelligence-driven policing aimed at dismantling criminal networks and reducing the circulation of illegal firearms.
Police Public Relations Officer, SP Adetoun Ejire-Adeyemi, in a statement issued on Wednesday on behalf of the Commissioner of Police, said the suspect was apprehended during the joint operation while in possession of the firearm.
According to the statement, the operation is part of the Command’s sustained strategy to disrupt cult-related activities and deny criminal elements the opportunity to operate within the state.
Commenting on the development, the Commissioner of Police, CP Ojo Adekimi, reaffirmed the Command’s determination to intensify the fight against cultism and other violent crimes.
“Every successful operation represents another step towards dismantling criminal networks and enhancing public safety across the state through proactive and intelligence-led policing,” the commissioner said.
The police disclosed that investigations are ongoing to identify and arrest other suspected members of the criminal network linked to the suspect.
The Command added that it remains committed to advancing the policing vision of the Inspector-General of Police, IGP Olatunji Rilwan Disu, through intelligence-led policing, strategic collaboration with relevant stakeholders and sustained operations aimed at ensuring that those responsible for threatening the peace and security of Kwara State are brought to justice.
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