49.1% Increase from IPO Price of 17,000 KRW Just Four Days After Listing
[Asia Economy Reporter Hyungsoo Park] SAMG Entertainment has continued its upward trend since its listing on the KOSDAQ market on the 6th.
According to the financial investment industry on the 11th, SAMG's stock price rose 49.1% compared to the public offering price of 17,000 KRW just four days after its listing. SAMG was listed on the 6th at a public offering price of 17,000 KRW. During the 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 was suggested to be between 21,600 KRW and 26,700 KRW, the public offering price was finalized at 17,000 KRW.
On the first day of listing, the stock price rose to the maximum price limit compared to the opening price. Expectations that the animation produced by SAMG would gain popularity in China influenced the stock price.
Researcher Daygyeom Park of Hi Investment & Securities introduced, "The sales of 'Catch! Teenieping,' which accounts for 68% of annual sales and has emerged as a main IP, occur domestically," and added, "Among the IPs owned by SAMG, 'Mini Force' was introduced on Chinese OTT platforms, causing a rapid increase in traffic." He continued, "It surpassed 3.5 billion cumulative views in just one year and four months," and added, "In 2018, a licensing contract was signed with WowTati, a subsidiary of Hengsheng Group." The cumulative sales of Mini Force toys in China reached 89.4 billion KRW by the end of 2021.
Researcher Park predicted, "From the end of the year, 'Catch! Teenieping' will also enter the Chinese market," and said, "Since the structure directly supplies products based on strong domestic success, we can expect good results."
In China, merchandise sales using the intellectual property (IP) of the animation 'Mini Force' produced by SAMG reached 180 billion KRW. Since Mini Force entered the Chinese market in 2019, about 1,000 types of products have been released. It continues to achieve record sales growth in the Chinese kids market. The Mini Force series has surpassed 28.8 billion cumulative views on Chinese new media, maintaining its position as a leading robot IP in China. Last year, it was selected as one of the 'China TOP 10 Licenses' by the U.S. market research firm NPD Group.
Along with the increase in sales in China, the royalties from the Mini Force IP also set an all-time high record. By expanding business in various areas such as animation, toys, new media, and musicals in the Chinese market, Mini Force's royalty sales in the third quarter of this year recorded approximately 1.2 billion KRW, a 183% increase compared to the same period last year.
SAMG secured stable sales based on a business partnership with WowTati, the largest media group in China. Since entering the Chinese market, SAMG is the only content company in Korea to continuously maintain stable sales.
Through WowTati, the theatrical animation 'Mini Force: Attack of the Hamburger Monster' will be released next year. The fifth series of Mini Force, 'Mini Force V Rangers,' will also be introduced to the Chinese market next year.
Kim Suhoon, CEO of SAMG, said, "Achieving 180 billion KRW in sales through a single domestic kids IP in the Chinese market is a very exceptional record," and added, "Despite the difficulties faced by Korean content businesses over the past few years, our IP competitiveness and local business strategy created synergy and achieved this valuable result even in the Chinese market environment." He emphasized, "After the lifting of the Han-Han Restriction, we will enhance the competitiveness of our IP library and achieve high sales by introducing new business models in various fields including animation, toys, F&B, fashion, and space business."
After listing, the number of issued shares is 8.6 million. Immediately after listing, the circulating shares are 2.06 million, and the restricted sale shares are 1.97 million for one month, 840,000 for two months, and 1.15 million for three months. The overhang burden, which accounts for 46% of the total issued shares, remains a challenge to overcome.
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