Yahoo Finance Hong Kong Pop Star-Backed Esports Firm NIP Group Files for US IPO
(Bloomberg) -- NIP Group Inc., an esports company that counts Hong Kong singer Jackson Wang among its backers, has filed for an initial public offering in the US.
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The Sweden-headquartered company’s largest shareholders also include co-founder Mario Ho, who has a 14.2% stake prior to the offering, according to a filing Wednesday with the US Securities and Exchange Commission. Ho is the youngest son of the late casino mogul Stanley Ho.
NIP Group comprises Sweden’s Ninjas In Pyjamas and China’s ESV5, teams that compete professionally in hit titles including League of Legends and Honor of Kings. The two organizations merged in 2023, the filing shows.
The number of American depositary shares the company will offer and their price range will be disclosed in a later filing when marketing begins.
Last year, NIP Group had a net loss attributable to shareholders of $57.2 million on revenue of $83.7 million in 2023, compared with a deficit of $31.5 million on revenue of $65.8 million the previous year, the filing shows. The net loss attributable to NIP Group was $13.3 million in 2023 versus $6.2 million in 2022, not including value accretion from the redemption of preferred shares.
The global esports gaming industry had a market size of $57.9 billion in 2022 and is expected to grow to $102.4 billion in 2027, NIP Group said, citing a Frost & Sullivan report. By the end of last year, the company’s two teams had won 117 tournaments and about $19.1 million in prize money combined, according to the filing.
Wang is a singer and producer with 97 million followers across his social media platforms, according to his official Spotify biography, which shows he performed at the League of Legends World Championship opening ceremony in 2022.
The offering is being led by Deutsche Bank AG, China International Capital Corp., US Tiger Securities Inc. and GF Securities Hong Kong. The company plans for its depositary shares to trade on the Nasdaq under the symbol NIPG.
(Updates with net loss figures and details on tournament results.)
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