‘Baby Shark’ Creator’s 47% Wipeout Sinks Stock Below IPO Price

The frenzy for the company behind the viral children’s hit “Baby Shark” has quickly cooled, with shares dropping below the initial public offering price just days after their trading debut.

Shares of South Korean entertainment firm Pinkfong Co. tumbled to as low as 32,500 won on Friday, a 14% decline from its IPO price of 38,000 won. The stock fell 47% from its Tuesday intraday high through Friday’s intraday low.

Pinkfong had initially surged as much as 62% on its Tuesday debut before losing steam as share prices sank worldwide. The quick reversal underscores how some of the market’s ...