Mario Ho Yau-Kwan, the youngest son of the late Macau casino tycoon, Stanley Ho Hung-sun, is spearheading NIP Group’s initial public offering (IPO) in the United States.
Ninjas in Pyjamas (NASDAQ:NIP), a Cayman Islands-based holding company, filed for an IPO on the Nasdaq Stock Exchange on June 12. The company aims to become the first US-listed Chinese company in the esports industry.
Ho, co-founder, chairman and co-chief executive, holds a 14.2% stake in NIP alongside his co-chief executive, Hicham Chahine.
NIP operates through two wholly owned subsidiaries: Ninjas in Pyjamas Gaming in Sweden, which is engaged in esports teams; and Wuhan Xing Jing Wei Wu Culture & Sports Development Co, which is involved in esports teams, talent management and event production.
According to the filing yesterday, the company plans to issue no more than 26.9 million common shares on the Nasdaq. Investments are intended for developing working capital, expanding esports teams, marketing and IP licensing.
Despite recording USD83.7 million (MOP671.8 million) in revenue last year, NIP remains a loss-making enterprise. Net losses widened to $13.3 million (MOP106.7 million) in 2023 from $6.3 million (MOP50.6 million) the prior year, due to substantial investments to grow the business.
A Frost & Sullivan report foresees global esports reaching $102.4 billion (MOP821.89 billion) by 2027, up from $57.9 billion (MOP464.72 billion) in 2022.
Authorities in Shanghai, Shenzhen and Hangzhou have also pledged funding and resources to promote the industry – in line with growing the popularity and commercial opportunities of esports globally.
NIP’s planned IPO comes as local governments in China are ramping up support for esports as part of efforts to develop the digital economy. Nadia Shaw
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