‘Baby Shark’ song creator Pinkfong price surged by up to 62% on their first day of trading, fueled by strong investor interest in the studio behind YouTube’s most-viewed song.
The peaked at 61,500 won in early trading on Tuesday. Despite raising a modest 76 billion won ($53 million) through its IPO, the shares were issued at 38,000 won each, the upper limit of the price range.
The offering was highly oversubscribed, with investor demand exceeding the shares available by more than 600 times, according to company disclosures.
What’s behind the rally?
Buoyed by the runaway success of “Baby Shark,” which has amassed over 16 billion views, the company is launching an to expand its reach beyond toddler audiences and showcase its potential as a comprehensive media studio capable of creating the next major hit. The listing also coincides with the rising global popularity of Korean entertainment, driven by acts like BlackPink and BTS.
Despite its strong prospects, Pinkfong’s stock remains undervalued at around 25 times its estimated 2025 earnings, compared to the roughly 40-times average earnings multiple of its industry peers, according to NH Investment & Securities Co.
Pinkfong’s portfolio features characters such as its iconic fox mascot, Baby Shark, Bebefinn, and Sealook, many of which are patented — allowing the company to diversify revenue and reduce reliance on Baby Shark. In fact, Bebefinn has now surpassed Baby Shark in content-generated revenue, according to CEO Kim Min-seok.
The company’s strategy revolves around producing catchy, short-form videos for platforms like YouTube, streaming services, TV, and mobile apps. Once a song gains traction, Pinkfong monetizes it through ads, streaming royalties, licensing deals, merchandise, live events, games, and longer video formats.
(With inputs from Bloomberg)
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