Big Hit, target price for Ithaca Big Deal

Securities companies raised their target price at the same time in anticipation that Hive (trade name Big Hit) will succeed in a global big deal and grow into a global agency. On the 5th, Big Hit closed at 248,000 won, a 2.05% increase from the previous trading day (2nd). During the intraday, the share price increased by 9% and seemed to recover to the level on the day of listing, but it ended with a reduced increase.

Big Hit, which was listed on October 15 last year, started at twice the initial price (270,000 won) of the public offering price (135,000 won) and then exceeded 350,000 won during the intraday, but ended at 258,000 won. For the next six months, the stock price did not exceed 250,000 won based on the closing price.

The reason the stock price rose on this day is because it revealed the fact of the acquisition of Ithaca Holdings, an American entertainment company belonging to world-class artists such as Justin Bieber and Ariana Grande after the close of the regular market on the previous trading day. In order to raise the acquisition fund amounting to 1.2 trillion won, Big Hit has a paid-in capital increase of 182 billion won to major shareholders and artists of Ithaca 19,500 won) announced the plan together.

In the financial investment industry, Big Hit, which showed aggressive investments and alliances after listing, evaluated that it became the number one entertainment company in the world through the acquisition of Ithaca. Many analysts assessed that the dilution of shareholder value through the capital increase was only 9%, which is not significant compared to the expected increase in corporate value of trillions of won.

Accordingly, most securities companies raised their target price on the same day. EBEST Investment & Securities raised over 500,000 won for the first time, raising it from 350,000 won to 502,000 won. In addition, Hana Financial Investment (320,000 won → 360,000 won), Yuanta Securities (260,000 won → 350,000 won), Korea Investment & Securities (310,000 won → 340,000 won), and KTB Investment & Securities (250,000 won → 330,000 won) all set the target price together. Raised. Jin-ah Ahn, a researcher at EBEST Investment & Securities, said, “The market share based on sales in the global music market is only 2% in 2020, but we expect the company to rapidly expand its appearance starting in 2022.” “The potential is so high that you can’t measure the top,” he explained.

Source

Share this:

Related