In an unprecedented move, Astralis Group is set to launch an Initial Public Offering (IPO). By doing this, they are set to cash in on the recent boom in the Esports industry, as well as become the first Esports company to go public.
What’s an IPO?
An IPO or Initial Public Offering is when a private company decides to sell its shares on the open market. By inviting the public to invest in the company by buying its shares, the company can raise a significant amount of capital.
About Astralis
Astralis group, set in Denmark, competes in various esports including Counter strike: global offensive, EA’s Fifa series, and the highly popular league of legends. The company strongly believes that highly skilled employees are its ‘engine’ and ‘largest asset’ and places special emphasis on attracting, hiring and retaining the very best esports professionals and employees. Their counter strike team is ranked number one in the world, and they have won millions of dollars in prize money. The popularity of the team (in part due to its borderless marketing strategy), has earned it commercial endorsements with brands such as Logitech and Audi which is set to be the main revenue stream for the company in 2020-21.
The IPO
The listing is set to take place on Nasdaq’s Copenhagen exchange on December 9, with the shares being priced at DKK 8.95. The company hopes to raise between DKK 125m and DKK 150m ( between $18.25m and $22.25m). It has already received around $8m from a range of European and Asian investors, according to chief executive Nikolaj Nyholm.
Implications for other Esports companies
This move is definitely going to motivate other esports team with huge fanbases (like Cloud9) to take similar risks. The IPO will also open the eyes of investors towards the scope of the esports industry, which attracts over 400 million viewers, is worth billions of dollars, and growing at 20% per annum!
