The Korea Herald


Hybe shares plunge almost 8% after a block deal

By Park Ga-young

Published : June 29, 2021 - 14:56

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BTS members pose for photo during a press conference held after releasing new digital single “Butter” on May 21. (Yonhap) BTS members pose for photo during a press conference held after releasing new digital single “Butter” 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 Tuesday after a major investor, STIC Investment, unloaded its holdings via a block deal.

Before closing down 7.37 percent to 289,000 won ($256), Hybe’s shares dropped by as much as 8.17 percent to 286,500 won on Tuesday.

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

The block deal took place after the local stock market closed at the price of 283,000 won, or a 9 percent discount of the closing price on Monday. 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.

Monday’s block deal was the third time that STIC Investment unloaded its shares of Hybe. It sold 196,177 shares for 61 billion won on October 15, 2020, the day of Hybe’s IPO, and then another 400,000 shares for 66 billion won in December 2020. From these previous two sales, STIC had already recouped its investments of 104 billion won it made in 2018 for 3.46 million shares, for which it paid about 30,000 won per share. After these 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 November 2. Hybe had been doing well since the release of BTS’ new single “Butter,” which is on its 5th week topping the Hot 100 Charts as of Tuesday. It was 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.