The company behind Youtube sensation “Baby Shark” dismissed speculation it’s preparing for an initial public offering in South Korea that would value the firm at $1 billion.

Pinkfong Co. hasn’t made a decision on an IPO, although it will keep reviewing the appropriate timing for a potential listing, the Seoul-based company said in a text message Friday. The Seoul Economic Daily reported Wednesday that the company, formally known as Smartstudy, will submit a preliminary listing application to the Korea stock exchange next month.

“Baby Shark,” the one-and-a-half minute song about a family of sharks, is the most-watched video ever on YouTube, with more than 10 billion views. 

South Korea’s IPO market has cooled this year, despite the successful debut of battery maker LG Energy Solution in January, with a series of companies canceling plans to float amid a broader market slump. Conglomerate SK Group delayed plans to list its battery unit and an app market operator, while builder Hyundai Engineering & Construction withdrew its IPO.

Shares of Samsung Publishing Co., which held almost 17% of Pinkfong as of the end of November, surged by the daily limit of 30% on Wednesday on the IPO speculation. The stock then plunged 13% on Thursday after Pinkfong Chief Executive Officer Kim Minseok posted a comment on Facebook saying “how come this journalist is aware of an IPO plan that I don’t know?”

The stock rose as much as 6.7% in early trading Friday before paring gains.

Source:
courtesy of BLOOMBERG

by Heejin Kim

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