The first stock of Chinese esports has really arrived.
On the evening of July 26th Beijing time, Xingjing Weiwu was listed on the NASDAQ Stock Exchange with the stock code "NIPG". Xingjing Weiwu's issuance price is $9/ADS, with a total of 2.25 million ADS (American Depositary Shares) issued. The successful listing of Xingjing Weiwu Group also marks the official birth of "China's first esports stock".
Based on the above pricing, if the underwriters do not exercise the option to purchase additional ADS, Xingjing Weiwu's IPO will raise $20.25 million.
Xingjing Weiwu plans to use approximately 50% of the proceeds from this fundraising to explore potential strategic acquisitions and investment opportunities, ensuring the company's organic growth; About 30% is used for market expansion and enhancing brand influence; About 20% will be used to expand the influence of esports teams, enhance talent management and competition related business capabilities.
All along, the Star Racing Weiwu Group, which has the halo of a "star shareholder", has attracted much attention due to its leadership position.
As the Chairman and CEO of Xingjing Weiwu Group, He Youjun, the 29 year old son of the "Gambling King", is also the largest shareholder of the company, holding 14.2% of the shares. As early as 2018, He Youjun founded V5 Esports Club and served as the president of the Macau Esports Federation. In the same year, the game company Chuangmeng Tiandi entered the capital market, and at the age of 23, he also participated in the listing ceremony of Chuangmeng Tiandi.
The Daily Economic News reporter noticed that the revenue of Xingjing Weiwu Group mainly relies on the "e-sports+" model, mainly through advertising sponsorship, event bonuses, endorsements, etc.
According to the prospectus, the two electronic sports brands currently operated by Xingjing Weiwu Group are Ninjas in Pyjamas and eStar Gaming; The company's esports team participates in high-level competitions in games such as League of Legends, CS: GO, Honor of Kings, Rainbow Six, Rocket League, Fortnite, and Call of Duty Mobile.
As of December 31, 2023, Xingjing Weiwu Group has over 120 professional players and approximately 16 million followers on global social media platforms.
According to financial data, the company's revenue increased from $65.84 million in 2022 to $83.67 million in 2023; The net loss increased from 6.31 million US dollars in 2022 to 13.26 million US dollars in 2023, further expanding the losses. As of December 31, 2023, the revenue of the esports team operation, talent management services, and event business of Xingjing Weiwu Group was approximately $21.7 million, $52.61 million, and $9.4 million, respectively, accounting for 25.9%, 62.9%, and 11.2% of the total revenue.
Xingjing Weiwu Group stated that they believe in esports+& quot; The model has enormous potential, and the company is actively exploring opportunities in areas such as esports education and training, community marketing, esports complexes, and IP licensing.
After entering Asia, the esports industry, which was once seen as "not doing its job", finally stepped onto the Olympic stage. At the 142nd session of the International Olympic Committee held in Paris in July this year, the resolution was unanimously passed to host the first Olympic Esports Games in Saudi Arabia, scheduled to be held in 2025.
According to Frost& Sullivan reports that the number of esports players worldwide has grown significantly, from 2.3 billion in 2017 to 3.1 billion in 2021, and is expected to increase from 3.3 billion in 2022 to 4.3 billion in 2027. With the increase in the number of gamers and various gaming platforms, the esports industry has also experienced significant growth.
Specifically for the Chinese market, according to the latest data from the "Report on China's Electronic Sports Industry from January to June 2024", the actual sales revenue of China's electronic sports industry from January to June this year was 12.027 billion yuan, a year-on-year increase of 4.43%, reversing the downward trend for two consecutive years. At present, the user base of electronic sports in China is about 490 million, a year-on-year increase of 0.52%, which remains basically stable.