SEOUL: The frenzy for the company behind the viral children’s hit “Baby Shark” has quickly cooled with shares dropping below their IPO price just days after debut.
Shares of South Korean entertainment firm Pinkfong Co tumbled to as low as 33,150 won on Friday, a 13% decline from its initial public offering price of 38,000 won. The stock had initially surged as much as 62% on its Tuesday debut before losing steam as a global downturn engulfed equity markets.
“Slipping below the IPO price sends a bad signal, no doubt,” said Choi Jong-kyung, an analyst at Heungkuk Securities in Seoul. “But we’re just four days in, and the debut came on a soft market day. It’s too early to pin this on the company alone.”