Shares of the creator of the Baby Shark cartoon soared after the IPO
Despite huge demand, Pinkfong Studios sold its shares cheaper than its peers
Quotes of the South Korean studio Pinkfong, the creator of the most popular video in the history of YouTube "Baby Shark Dance", at the opening of trading after the IPO in Seoul jumped by 62%. The Pinkfong Company listed at 38,000 won per paper ($26). The debut trading started at 58,000 won, at the moment the price reached 61,500 won ($42), Bloomberg reports.
As part of the IPO, the author of the famous video about a shark sold shares for 76 billion won ($53 million). At the same time, investor demand exceeded supply more than 600 times. According to NH Investment & Securities calculations, Pinkfong placed securities at a price 25 times higher than the projected earnings per share in 2025, while the average multiple for similar companies is about 40, the agency notes.
Pinkfong's business model is based on creating short viral videos for YouTube, streaming platforms, television and mobile apps. Many of the studio's characters, including its Pinkfong fox mascot, are protected by patents, which helps reduce the dependence of revenue on the Baby Shark brand. According to Pinkfong CEO Kim Min-seok, the musical animated series for preschoolers Bebefinn has already surpassed the Baby Shark franchise in content revenue.
This article was AI-translated and verified by a human editor
