Big Hit Entertainment Co. may face selloff pressure after the lockup expiry of its 14 million shares this month, but only a limited amount of shares will likely be released in the market.
According to Korea Securities Depository on Wednesday, 192.32 million shares of 35 stocks held by large shareholders that were prohibited from trade to protect individual investors may be released in April. They include 18.88 million shares of three stocks on the benchmark Kospi and 173.44 million shares of 32 stocks on the secondary Kosdaq.
In the Kospi, 12.85 million shares of Big Hit Entertainment owned by large shareholders may be out, although the possibility of a massive selloff after a lift in restriction remains low, which would limit impact on its stock price, market analyst expected.
Institutions, however, may release their holding in Big Hit Entertainment after expiry in lock-up obligation. More than 1 million shares of Big Hit Entertainment held by institutional investors have been locked up for six months since its initial public offering (IPO).
Previously, shares of Big Hit Entertainment fell 5.42 percent on Jan. 15, the trading day before expiry in lock-up obligation by institutions on Jan. 18. So far this year, Big Hit Entertainment shares have surged 51.9 percent.
Shares of Big Hit Entertainment closed 1.65 percent lower at 239,000 won ($211.15) on Thursday.
The top three stocks with the largest number of shares cleared for trading are 45.5 million shares in NeoImmuneTech, 30 million shares in Fourth Link, and 20.08 million shares in CSA Cosmic, according to Korea Securities Depository.
By Shin Yoo-kyung and Lee Eun-joo
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]