The South Korean jingle is well ahead of Luis Fonsi’s ‘Despacito’ on YouTube as kids worldwide keep watching the video endlessly, nearly a decade after it was released
The entertainment company behind Baby Shark Dance, the most-watched YouTube video of all time, is seeking to raise as much as 76 billion won (S$70 million) via an initial public offering (IPO) in Seoul.
South Korea’s Pinkfong plans to issue two million new shares at 32,000 to 38,000 won apiece, according to a prospectus filed on Monday (Sep 22). At the top of the price range, the deal values the company at about 545 billion won, Bloomberg calculations show.
Watched more than 16 billion times, the South Korean jingle is well ahead of Luis Fonsi’s Despacito on YouTube as kids worldwide keep watching the video endlessly, nearly a decade after it was released. Pinkfong has expanded its portfolio beyond the Baby Shark franchise into games, streaming, live performances and other animated characters, amassing more than 270 million subscribers across its YouTube channels, according to its website.
Still, the firm has not been able to replicate the success of that hit, with songs such as Penguin Dance garnering a more modest 125 million views. Local media reported earlier this year that Pinkfong’s valuation has been revised down from more than one trillion won in mid-2021.
The Seoul-based firm plans to use the IPO proceeds to bolster its global market presence, expand its content pipeline, and acquire a 3D content production studio, according to the prospectus. It also plans to invest in artificial intelligence and finance the production of feature-length theatrical series to extend the longevity of its franchises.
Operating profit jumped to 18.8 billion won in 2024, compared with four billion won a year earlier, while revenue climbed to 97.4 billion won from 87.8 billion won over the same period, driven by strong overseas demand. International sales made up more than 70 per cent of total revenue, underscoring the reliance on foreign viewers. Still, the company warned of intensifying competition in the global content market.
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Pinkfong co-founder Kim Min-seok owns more than 18 per cent of the company, and his stake will be valued at about 86.5 billion won at the top of the IPO price range, based on Bloomberg calculations.
Shares in Samsung Publishing, which owns almost 17 per cent of Pinkfong, jumped almost 3 per cent in early Tuesday trading before paring most of the gain.
The bookbuilding process will run from Oct 28 to Nov 3, with the final offer price to be set on Nov 5. Investor subscriptions will run from Nov 6 to 7.
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Mirae Asset Securities and Samsung Securities are serving as lead arrangers. BLOOMBERG
