Baby Shark creator Pinkfong sees shares soar in stock market debut

(Sharecast News) - Shares in Pinkfong jumped in Seoul on Tuesday on the Baby Shark creator's stock market debut, valuing the South Korean entertainment company at more than $50m. The company, known for its viral Baby Shark hit which has been viewed on YouTube over 16bn times since its release in 2016, had priced its IPO at KRW38,000, the top of its target range.

However, shares quickly soared as high as KRW61,500 before trimming gains to settle at KRW41,550, up 9% on the day. The company raised a total of KRW76bn from the IPO.

Officially known as The Pinkfong Company, the entertainment studio's move to the public market is expected to help expand its "content sales-oriented" business model, according to chief financial office Choi Jung-ho.

Proceeds from the IPO will be used to expand its portfolio of franchises, with sales generated by licensing and merchandising revenues based on its programmes and toys.

The firm, which generated sales of KRW97.4bn ($67m) last year, already has subsidiaries in the US, China and Japan, and is plotting a new arm in Europe and South East Asia over the coming years.