Nasdaq’s first esports company goes public

Garance Limouzy July 29, 2024

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Nasdaq’s first esports company goes public

On July 26, NIP Group became the first esports company to list on Nasdaq. Co-founded by Mario Ho, son of the late gambling tycoon Stanley Ho, the company debuted on the stock exchange with a market capitalisation of approximately $506 million. Its shares closed at $9.02, remaining steady from the $9 IPO price.

Headquartered in Sweden, NIP Group operates around the world, with 125 professional gamers from China, Europe, and Brazil, and two main esports teams: EStar Gaming, focused on mobile games in China, and Ninjas in Pyjamas, centered on console and PC gaming in Sweden. These teams compete internationally in popular titles such as Counter-Strike: Global Offensive, Honor of Kings, and League of Legends.

EStar Gaming is said to have accumulated $10.9 million in prize money from 60 tournaments as of 2023, while Ninjas in Pyjamas has garnered $8.2 million from participating in 57 competitions.

Financial performance

NIP Group reported a revenue increase of 27% year-over-year to $83.7 million in 2023, driven primarily by talent management services, sponsorship, advertising, and live streaming. Despite this growth, the company reported a widened net loss of $13.3 million in 2023.

The IPO, which raised over $20 million, aims to fund NIP Group’s growth initiatives, including potential acquisitions, expanding its fan base, and extending its esports teams into key regions like Southeast Asia, North America, and the Middle East.

The company’s diversification strategy also includes expanding into esports education and esports-themed hotels. NIP Group has already established partnerships in these sectors.

Esports’ new-found legitimacy

“In the past decade, public perception of esports has changed significantly. Previously, many considered esports merely as ‘playing games’ and a pastime. With the professionalisation and formalisation of esports events, people began to recognise that esports competitions are on par with traditional sports in terms of peak competitive events,” Ho explained.

The International Olympic Committee’s unanimous decision to establish the Olympic Esports Games, set to take place in 2025 in Saudi Arabia, proves the evolving recognition of esports. In China alone, there are 668 million gamers.

“Esports culture is diverse and vibrant; it is not just an extension of gaming but an important platform for young people to express themselves and exchange ideas, playing a significant role in cultural exchange,” Ho concluded.