May 08, 2024

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The members of BTS pose for a photo during a press conference after releasing their new digital single, “Butter,” in Seoul on May 21. (Yonhap)

Shares of Hybe, the South Korean entertainment agency behind the hugely popular boy band BTS, plummeted more than 7 percent on June 29 after a major investor, STIC Investment, unloaded its holdings via a block deal.

Before closing at 289,000 won ($256) per share, down 7.37 percent, the value of Hybe’s shares dropped by as much as 8.17 percent to 286,500 won on June 29.

Korea’s leading private equity fund, STIC Investment, sold 2.86 million shares, or 7.57 percent of all shares in Hybe, a regulatory filing showed.

The block deal took place after the local stock market closed at 283,000 won, or a 9 percent discount on the closing price, June 28. As a result of the deal, STIC cashed in 810 billion won.

About 70 percent of STIC’s holdings were sold to overseas investors, while domestic institutional investors took 30 percent.

June 28’s block deal marked the third time that STIC Investment had unloaded Hybe shares. It sold 196,177 shares for 61 billion won on Oct. 15, the day of Hybe’s IPO, and then another 400,000 shares for 66 billion won in December. From those two sales, STIC had already recouped the 104 billion won investment it made in 2018 for 3.46 million shares, paying about 30,000 won per share. After the three deals, STIC still owns 179,278 locked-up shares.

The block deal came as Hybe’s stock price hit record highs this month, having reached 324,500 won on June 23. After debuting at 347,490 won, the share price fell as low as 139,590 won on Nov. 2. Hybe had been doing well since the release of BTS’ latest single, “Butter,” which had topped Billboard’s Hot 100 chart for a fifth week as of June 29. The company’s stocks were also boosted by the merger of US-based integrated media company Ithaca Holdings, which is behind many chart-topping artists, including Justin Bieber and Ariana Grande. Hybe took a 100 percent stake in Ithaca for 1.18 trillion won.

By Park Ga young (gypark@heraldcorp.com)