[Asia Economy Reporter Hyungsoo Park] Digital kids content company SAMG Entertainment (SAMG) will be listed on the stock market on the 6th. The company continues to grow as its self-produced children's animations, including the 'Mini Force' series, 'Catch! Teenieping', and 'Super Dino', have been successive hits.
According to the financial investment industry on the 4th, SAMG will be listed on the KOSDAQ market with a public offering price of 17,000 KRW.
As a result of a two-day demand forecast for institutional investors from the 17th to the 18th of last month, the competition rate recorded was 44.73 to 1. Although the expected price range for the public offering was suggested to be 21,600 to 26,700 KRW, the public offering price was finalized at 17,000 KRW.
Concerns about overhang and uncertainties regarding the possibility of success in overseas markets influenced the determination of the public offering price.
Researcher Daygyeom Park of Hi Investment & Securities explained, "Sales of 'Catch! Teenieping', which accounts for 68% of annual sales and has emerged as a key IP, occur domestically," adding, "Considering the size of the domestic kids market, there were concerns that additional growth might be difficult."
He continued, "Although there was high export expectation, the case of Choirock's 'Turning Mecard', which ultimately failed to produce results, also had an impact.
Despite the low interest from institutional investors in the demand forecast, Researcher Park judged that the growth potential is significant. Among the IPs owned by SAMG, 'Mini Force' was introduced on Chinese OTT platforms, causing traffic to surge. It surpassed 3.5 billion cumulative views in just 1 year and 4 months. In 2018, SAMG signed a licensing contract with Wowtati, a subsidiary of the Hengsheng Group. The sales of Mini Force toys in China reached 89.4 billion KRW cumulatively by the end of 2021.
Researcher Park predicted, "From the end of the year, 'Catch! Teenieping' will also enter China," adding, "Since the structure involves directly supplying products based on strong domestic box office success, positive results can be expected."
Researcher Park analyzed that even considering concerns about overhang due to the release of lock-up, the high growth potential should be noted.
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