Danish Astralis will be the first esports team to conduct an IPO, according to Bloomberg. Application collection is due to close on Friday, November 29, with trading scheduled to begin on December 9 at Copenhagen’s Nasdaq First North Growth Market Denmark for small companies. According to the prospectus, Astralis plans to attract 125–DKK 150 million ($ 18–22 million), the placement price will be 8.95 kroons per share.
The newly issued shares will be introduced to the market, so the total share of the outstanding shares will become known after the end of the IPO.
“We believe that today the foundations are being laid for some of the most valuable and iconic brands for the next 10 years,” said Nikolay Niholm, CEO of parent company Astralis Group. Niholm, formerly a venture capitalist, is confident in the success of the IPO; according to him, “a number of European and Asian investors” have submitted preliminary applications for about $ 8 million. Entering the public market will allow the company to focus on the long-term perspective and attract new investors, and the funds received will be used to “strengthen its position in the market by investing in our brands and media platforms, “Niholm explained to Bloomberg.
Astralis is the world champion in the multiplayer computer game Counter-Strike: Global Offensive. Players are divided into two teams – terrorists and special forces, after which they fight each other in a series of rounds, according to the results of which the winning team is determined. This is the last game in the Counter-Strike series, released in 2012. Astralis was founded in 2016.
Out of 594 matches played Astralis won 416 (70%), lost 174 (29%) and drew 4 games (1%), according to the website cybersport.ru.
Astralis Group qualifies as a media company and also includes teams competing in games such as the strategy RPG League of Legends and the FIFA soccer simulator from Electronic Arts. Astralis has won millions of dollars in esports tournaments, sponsored by Audi and Logitech.
The global esports market has more than doubled since 2016 to $ 1.1 billion this year (according to Newzoo Global Esports Market Report). Of these, about 82% ($ 897.2 million) will fall on investments in brands (media rights, advertising, sponsorship). In 2022, the size of this market may reach $ 1.8 billion.
It is expected to grow by more than 20% annually, according to Astralis’ prospectus.
Esports from an ordinary hobby has become a full-fledged business, notes Evgeny Linchik, head of the share management department of Sberbank Asset Management: “In the largest markets, in China and the United States, entire companies are working on the development of this direction in the field of virtual reality technologies, graphics, production of personal computers and gadgets ”.
According to preliminary bids, demand for Astralis shares will exceed supply, said Per Hansen, an investment specialist at Copenhagen-based Nordnet. “Cybersport is now on the rumor, there is a lot of discussion as to what it can turn into in five years,” – quoted by Bloomberg. The time for the placement is also well chosen, given the interest of investors in new share issues amid ultra-low interest rates, Hansen said.
In the ranking of the most valuable companies in the field of esports, which was presented by Forbes magazine at the beginning of November, Cloud9 ($ 400 million) is in 1st place, and Misfits Gaming ($ 120 million) is in the last, 12th place. Astralis is not in it.
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