‘Baby Shark’ creator’s 62% wipeout sinks stock below IPO price

The frenzy for the company behind the viral children’s hit “Baby Shark” has all but fizzled after shares slid below their IPO price just days after debuting. 

Shares of South Korean entertainment firm Pinkfong Co. tumbled to as low as 35,050 won on Friday, a 7.7% decline from its initial public offering price of 38,000 won.

The stock initially surged after its debut on Tuesday, but saw its fortunes reverse as a global downturn engulfed equity markets

Valuation questioned

Riding on the success of “Baby Shark,” which has been viewed more than 16 billion times, the company has gone public to grow its reach beyond toddlers’ screens and position itself as a full-fledged media studio capable of producing big hits. 

Some investors, though, have questioned the company’s valuation and ability to replicate prior success, saying further gains in the stock depend on its ability to create more characters and monetise them effectively.