Stanley Ho's youngest son Mario leads first listed Chinese company in the esports industry

Mario Ho Yau-kwan, the youngest son of the late Macau casino tycoon Stanley Ho Hung-sun, on Friday became the youngest founder of a Nasdaq-listed company in Asia, as the 29-year-old entrepreneur's esports firm NIP Group started trading in the United States.

NIP, which achieved a milestone as the first listed Chinese company in the esports industry, raised a total of US$20.25 million from its offering of 2.25 million American depositary shares at US$9 per share.

"Looking back at this journey, we started as an esports team [and] has now grown into becoming the representation of the global esports industry," said Ho, NIP's co-founder, chairman and co-chief executive, in a speech during the bell-ringing ceremony at the Nasdaq MarketSite in Times Square, New York City.

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"NIP group is ready to leave a significant mark on the global gaming industry as a Nasdaq-listed company," he said, adding that going public in the US was a "dream-come-true" moment for him as an entrepreneur.

NIP Group chairman Mario Ho Yau-kwan (centre) and his colleagues pose in front of the Nasdaq MarketSite in Times Square, New York City, on Friday. Photo: X/ NasdaqExchange alt=NIP Group chairman Mario Ho Yau-kwan (centre) and his colleagues pose in front of the Nasdaq MarketSite in Times Square, New York City, on Friday. Photo: X/ NasdaqExchange>

Nasdaq vice-chairman Bob McCooey on Friday lauded Ho, born in 1995, for becoming the youngest founder of a Nasdaq-listed company in Asia. Ho is also the largest individual shareholder of NIP after the IPO, with a 13.6 per cent stake.

NIP intends to use the net proceeds from its US listing for working capital, expanding the presence of its esports teams, marketing and growing their fan base, potential strategic acquisition and investment opportunities, according to its prospectus.

The group's listing reflects the growing popularity of esports around the world, as well as its vast commercial opportunities.

The market size of the global esports industry is expected to reach US$102.4 billion in 2027, up from US$57.9 billion in 2022, according to a Frost & Sullivan report cited in NIP's prospectus. NIP was described by the report as "a leading esports organisation" with the most expansive global footprint on the back of operations across Asia, Europe and South America.

Stockholm-based Ninjas in Pyjamas Gaming, which is engaged in esports teams operations, is a wholly owned subsidiary of NIP Group. Photo: Ninjas in Pyjamas alt=Stockholm-based Ninjas in Pyjamas Gaming, which is engaged in esports teams operations, is a wholly owned subsidiary of NIP Group. Photo: Ninjas in Pyjamas>

"What esports really lacks is not money, but the scenarios of making money," said Zhang Shule, an analyst at CBJ Think Tank.

"[NIP's] listing may provide sufficient funds for the company, but after that, the key to the future still depends on its profit model," he said.

NIP is a Cayman Islands-based holding company, with operations primarily conducted through two wholly-owned subsidiaries: Ninjas in Pyjamas Gaming in Sweden, which is engaged in esports teams operations; and Wuhan Xingjingweiwu Culture & Sports Development, which is involved in esports teams, talent management and event production operations. Its principal executive offices are located in Stockholm.

While it recorded a net revenue of US$83.7 million last year, up from US$65.8 million in 2022, NIP is still a loss-making enterprise. Net losses last year widened to US$13.3 million, compared with US$6.3 million in 2022. The company's prospectus said that loss reflected the "substantial investments we made to grow our business".

The listing of Ho's company also marks a rare milestone for a Chinese esports company, as many previous investments in the industry had ended in failure, including that of 36-year-old Wang Sicong, son of Chinese property mogul Wang Jianlin.

Once referred to as "China's richest son", Wang's debt struggles led to his esports streaming platform Panda TV going bankrupt in 2019. He also divested his stake in esports club Invictus Gaming.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.

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