‘Baby Shark’ production company swims into IPO, promises more viral hits

The Pinkfong Company, known for its viral hit “Baby Shark Dance,” plans to launch an initial public offering (IPO) on the Kosdaq exchange on November 18. The company is seeking to raise capital by offering shares priced between 32,000 and 38,000 won ($22 to $27) and aims for a market capitalization of up to 545.3 billion won.

Founded in 2010 as SmartStudy, Pinkfong aims to expand its content beyond animations and songs to include other digital offerings such as webtoons. CEO Kim Min-seok announced that the company intends to produce new intellectual properties (IPs) every two years, shortening the timeline from three years.

While Pinkfong has enjoyed significant success internationally, particularly in North America, its revenue remains heavily reliant on its primary characters. Last year, revenue from characters associated with “Baby Shark,” including Pinkfong and Hogi, accounted for about 77% of total income. The company’s struggles in recent years include a net loss of 18.34 billion won in 2023, although it rebounded to a net profit of 4.99 billion won in the previous year.

Despite its challenges, Pinkfong’s market position is bolstered by the favorable conditions of the current IPO environment, which analysts attribute to liquidity expansion and expectations for interest rate changes.

• Why it matters: This IPO represents a critical step in diversifying Pinkfong’s revenue sources and enhancing its global presence.
• The latest: The upcoming IPO on November 18 reflects improving market conditions that could support the company’s growth prospects.