NIP Group Completes First Chinese Esports IPO

On July 26, NIP Group was officially listed on the NASDAQ Stock Exchange under the ticker symbol “NIPG”. The listing ceremony was attended by Mario Ho, Chairman and Co-CEO of NIP Group, Hicham Chahine, Co-CEO of NIP Group, and Sun Liwei, President of NIP Group.

In this IPO, NIP Group issued 2.25 million ADS (American Depositary Shares) at a price of $9 per ADS, raising a total of $20.25 million. The successful listing of NIP Group marks the birth of the “First Chinese Esports Stock”.

The listing of NIP Group on NASDAQ is a strong testament to the positive interaction between Chinese pioneering enterprises and the global economy and culture. It is a proactive practice for the Chinese esports industry to seek high-quality global development.

As a global integrated digital sports group with a core business in esports clubs, as well as diversified businesses in event organization and digital sports talent management, NIP Group’s operations span Asia, Europe, and South America. The group owns well-known esports club brands eStar Gaming and Ninjas in Pyjamas (NIP), and is involved in major esports projects such as League of Legends, Honor of Kings, Counter-Strike: Global Offensive, Rainbow Six Siege, and CrossFire. The company has home venues in Wuhan and Shenzhen, and offices in Stockholm, Shanghai, and São Paulo.

According to the prospectus, NIP Group’s revenue in 2023 was $83.67 million, a 27% increase from $65.8 million in the previous year; gross profit was $7.2 million, compared to $3.74 million in the previous year. The group’s overall gross profit margin and the gross profit margin of its three main business segments all showed steady improvement, demonstrating strong business self-sufficiency.

Esports has a unique system of rules and interactive modes. As a pioneer and explorer of the professionalization, popularization, and globalization of esports, NIP Group is becoming a positive incentive bridge in sports. The U.S. listing will further enhance the company’s governance capabilities, open new opportunities for global and diversified development, and serve as an innovative example for investors to understand and participate in the esports and digital sports industries.

Mario Ho stated, “Creating an extraordinary esports experience and connecting dreams with the world is the founding mission of NIP Group and our driving force. Our development is fueled by the love and support of millions of gamers, which inspires us to continually pursue excellence and remain at the forefront of the gaming entertainment ecosystem. In the future, we will use our listing as an opportunity to build the world’s most popular and valuable digital sports group, bringing the ultimate competitive experience to esports enthusiasts worldwide and creating greater value for global investors.”

Hicham Chahine remarked, “This is an incredibly exciting moment. As a pioneer in the esports industry, NIP has been competing in the esports arena since 2000. Starting today, we embark on a new journey. The listing of NIP Group represents the first truly global esports organization spanning Asia, Europe, and South America.”

Bob McCooey, Vice Chairman of NASDAQ Group and Chairman of Asia Pacific, congratulated NIP Group on its listing and expressed his delight at welcoming a vibrant and creative new member to the NASDAQ market. He also highlighted that He Youjun set a record as the youngest founder of a NASDAQ-listed company from Asia.

The prospectus reveals that NIP Group is building a unique “esports+” business model, extending from esports club operations to talent management, event organization, advertising, and other innovative businesses. As of the end of 2023, the net income proportions of esports club operations, talent management, and event organization businesses were 25.9%, 62.9%, and 11.2%, respectively. This diversified income source ensures sustainable profitability. Additionally, NIP is actively exploring opportunities in esports education and training, community marketing, esports complexes, and IP licensing.

Esports is gaining visibility and recognition from authoritative institutions both domestically and internationally. Notably, on July 23, the International Olympic Committee (IOC) formally approved a proposal at its 142nd session in Paris, France, to host the inaugural Olympic Esports Games in Saudi Arabia in 2025, marking the formal entry of esports onto the “Olympic” stage.

In the future, with advancements in virtual reality, augmented reality, Web 3.0, and other technologies, esports will have a more profound impact on the economy, culture, and society. The successful listing of NIP Group on NASDAQ not only reflects the diverse development of commercial scenarios driven by the esports industry but also opens up new possibilities for the future development of the esports industry.