Shares of HYBE Co., rebranded from Big Hit Entertainment, have been skidding from their April 6 peak following the company’s announcement of $1 billion buyout of American major label Ithaca Holding for $1 billion amid concerns for overhang ahead of Thursday expiry of Oct. 15 2020 IPO lockup on holdings by major shareholders and institutions.

They closed Wednesday 6.73 percent lower at 235,500 won ($211.12). The shares have been sagging ahead of the lockup expiry after touching their highest closing of 276,000 won Tuesday.

April 15 is also the deadline for shareholders to become entitled for a new issue offered at a discount for a $400 million rights offering program to help finance the Korean agency behind BTS in its $1 billion acquisition of the L.A. music label representing global artists like Justin Bieber and Ariana Grande.

Since a holder of HYBE stock by Thursday would be eligible to subscribe to the new issue offering on April 19 at an estimated 197,500 won apiece, which is at least a quarter discounted from current level, new investors could pour in on the pivotal day. The pricing for 440 billion won worth secondary offering would be allocated 0.0625382609 per one share. Pricing will be confirmed on May 27, but will likely be comfortably discounted from current level.

A tug of war of buying and selling can pan out on Thursday amid looming overhang issue.

HYBE on Monday alerted that the IPO lockup on large shareholders is lifted from Thursday.

Their holdings total 21.89 million issues, including 12.85 million held by founder and CEO of Bang Si-hyuk and BTS’s seven members.

Netmarble Corp. owns 7.08 million shares and Well Blink Limited 888,784. Institutions hold 1.06 million shares through IPO subscription. Except for the 1.426 million allocated to the employee association, all other shares are all free to discharge.

Well Blink for instance bought convertible preferred stock at 2,118 won apiece which means it can reap huge profit at current price. Institutions also would be tempted to sell some of their IPO holdings as the prices are doubled from their purchase level.

By Kang Bong-jin and Lee Soo-min

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