Shares of The Pinkfong Company (KOSDAQ:403850), the creator of Baby Shark, plunged to 33,150 won in Friday morning trade, marking a 13% decline from its initial public offering (IPO) price of 38,000 won, Bloomberg News reported Friday.

The stock jumped as much as 62% on its Tuesday debut before plunging amid a global market downturn. The IPO raised a relatively small amount of 76 billion won, despite strong demand. The stock was priced at the top of its IPO range, the report said.

Investors initially hoped the IPO and listing would make Pinkfong the next big entertainment giant. But doubts are emerging over its valuation and whether it can repeat past hits, with future stock gains depending on the firm's ability to develop new characters and monetize them, it said.

Shares of the company were down 8% in recent trade.

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