The South Korean company behind the hit children’s song “Baby Shark” popped in its trading debut, as investors snapped up shares of the studio behind YouTube’s most-watched video.
The “Baby Shark” video has been watched more than 16bn times on YouTube since its release in 2016 as children — and their caregivers — became hooked on the “doo-doo-doo” refrain.
Pinkfong’s shares jumped as much as 62 per cent to a high of Won61,500 ($42) on Tuesday morning after raising Won76bn from an initial public offering.
The studio, which produces children’s programmes and toys, said it wants to expand its portfolio and embark on a broader global expansion.
Its IPO is taking place as South Korean entertainment has amassed a global audience from the success of K-pop groups, including BTS and Blackpink, and shows such as Squid Game.
Earlier this year, KPop Demon Hunters, a story about a girl group battling demons, became the most-watched movie on Netflix of all time.
Korean entertainment is expected to stay in the spotlight next year, as boy band BTS starts a world tour, with the group planning to perform 65 concerts, including 30 in North America.
“[Pinkfong] will continue stable growth on the back of [intellectual property] diversification and global business expansion,” analysts at Korea Investment & Securities wrote in a note.
“Their top-line growth and profits next year will be driven by licensed and merchandise goods sales of their popular IP products even if their profit growth slows this year due to increased expenses.”
Pinkfong posted Won18.8bn of operating profit last year on sales of Won97.4bn. The company has set up subsidiaries in the US, China and Japan and is planning to expand into Europe next year and south-east Asia in 2027.
“We have secured a system to produce and distribute globally successful IPs repeatedly,” said Choi Jung-ho, the company’s chief financial officer, earlier this month, adding that the company’s “content sales-oriented” business structure helps it boast the industry’s best profitability.
Analysts compared Pinkfong’s performance with the SAMG Entertainment studio, whose shares have more than tripled this year to Won43,300 on the back of its popular Catch! Teenieping animated series for children.
Pinkfong has produced other children’s shows, such as Bebefinn and Sealook, and has patented many of its characters.
The company said earlier this month that its Bebefinn franchise had overtaken that of “Baby Shark” in terms of views and subscribers.
