Big Hit Entertainment Co., the management label behind Kpop sensation BTS, debuted with a bang, but its dramatic crash after a pop on the first day of trading is causing South Korean regulators to seek safeguards for momandpop investors.
Riding on the success of scoring Koreas firstever no. 1 hit on the main U.S. Billboard music chart in September, the management agency of BTS went public in October as one of the hottest listings in town.
But the entertainment agencys listing has since been a subject of outcry from retail investors, as many sought refunds after a more than 52 crash from a peak of 351,000 won 314.80 a share reached on the first trading day, Oct 15.
The stock is now trading at 158,000 won a share, slightly above its initial public offering IPO price of 135,000 won per share.
I used money I have been saving up for my wedding to buy Big Hit shares at around 300,000 won, 50 million won 44,842.65 worth. Is there a way I can get that refunded if I show receipts and file for some kind of petition? wrote one of hundreds of investors discussing ways to get share purchases refunded at an investment forum on local portal Naver.
South Koreas IPO market has similarities with a lottery. Retail investors can borrow as much as they can to subscribe for as many shares as they can. But because orders massively outnumber the amount of stock made available for retail investors, usually 20, many end up buying only after the stock gets listed.
Although BTS fans piled…