You’ll be thrilled to hear that Mario Ho Yau-kwan, the youngest son of the late Macau casino tycoon Stanley Ho Hung-sun, has made history. On Friday, the 29-year-old entrepreneur’s esports firm, NIP Group, began trading in the United States, making him the youngest founder of a Nasdaq-listed company in Asia.
NIP Group has made headlines as the first listed Chinese company in the esports industry. They raised an impressive US$20.25 million from the offering of 2.25 million American depositary shares, priced at US$9 per share.
A journey from an eSports team to global representation
Reflecting on this remarkable journey, Ho, NIP’s co-founder, chairman, and co-chief executive, expressed his excitement during the bell-ringing ceremony at the Nasdaq MarketSite in Times Square, New York City. “We started as an esports team and have now grown into a global representation of the esports industry,” Ho proudly stated.
He added that NIP Group is ready to leave a significant mark on the global gaming industry as a Nasdaq-listed company. For Ho, going public in the US is a “dream come true” moment.
Nasdaq vice chairman Bob McCooey praised Ho for his achievement, noting that Ho, born in 1995, is now the youngest founder of a Nasdaq-listed company in Asia. Following the IPO, Ho remains the largest individual shareholder of NIP, holding a 13.6 per cent stake.
Plans for growth and expansion
NIP plans to use the proceeds from its US listing for various purposes. They aim to bolster their working capital, expand the presence of their esports teams, enhance marketing efforts, grow their fan base, and explore potential strategic acquisitions and investment opportunities.
The group’s listing highlights eSports’ rising popularity and commercial potential worldwide. According to a Frost & Sullivan report cited in NIP’s prospectus, the global esports industry is expected to grow from US$57.9 billion in 2022 to US$102.4 billion by 2027. The report describes NIP as “a leading esports organisation” with a significant global footprint, operating across Asia, Europe, and South America.
However, industry experts, such as Zhang Shule from CBJ Think Tank, emphasise that NIP’s profit model is the key to its future success. “Esports lacks not money, but the scenarios for making money,” Zhang remarked. [NIP’s] listing may provide sufficient funds, but the future depends on its profit model.”
NIP’s global operations
NIP is a Cayman Islands-based holding company with operations managed through two subsidiaries: Ninjas in Pyjamas Gaming in Sweden, which focuses on esports team operations, and Wuhan Xingjingweiwu Culture & Sports Development in China, involved in esports teams, talent management, and event production.
Their principal executive offices are in Stockholm. NIP’s esports teams compete in popular video games like League of Legends, Counter-Strike: Global Offensive, Honour of Kings, Rainbow Six, Rocket League, Fortnite, and Call of Duty: Mobile.
Despite its success, NIP is still a loss-making enterprise. Last year, it recorded net revenue of US$83.7 million, up from US$65.8 million in 2022. However, its net losses also increased to US$13.3 million, compared to US$6.3 million in 2022. According to the company’s prospectus, these losses reflect the “substantial investments we made to grow our business.”
Ho’s achievement also represents a significant milestone for Chinese esports companies, many of which have struggled. Notably, Wang Sicong, the 36-year-old son of Chinese property mogul Wang Jianlin, faced debt issues leading to the bankruptcy of his esports streaming platform Panda TV in 2019. Wang also sold his stake in esports club Invictus Gaming.
