Dubai
The Southeast Asian gaming market is expected to grow at an 8.5% CAGR during the forecast period. The rising popularity of various sports and investments in internet infrastructure are the primary factors driving the market’s enormous growth potential.
Buying E-sports stocks online and their subsequent performance are “all the rage” in America and South Asian investors be a part of this incredibly lucrative industry as E-Sport IPO’s enter the market with an incredible surge in both demand and price. To name one of the most notable one, Esport Technologies soared 700% over its IPO pricing level.
IPO pops are not new. According to data from Jay Ritter, the average IPO pop from 1980 through 2020 was 18.4% in one day. In 2021, the average first day gain after an IPO was 16%. Using all common stock IPOs between 2000-2020, we confirm previous evidence of positive average first-day IPO returns of 21.11 percent in one day.
Recent Esport IPO’s:
- NASDAQ: EBET) Esport Technologies soared 700% over its IPO pricing level. Seeking Alpha Apr. 9, 2021.Esports Technologies (NASDAQ: EBET) soars again in early trading after a strong debut yesterday that saw shares jump more than 500% from their IPO pricing level. Shares of EBET are up 33.36% premarket to $48.57 vs. the IPO pricing mark of $6.00 per share.
- Mobile Global Esports, (NASDAQ: MGAM), was listed on the Nasdaq on July 29, 2022, pricing the 1.5 million shares on offer at $4.00. MGAM shares went to trade as high as $20 on the second day of trading
The rise of eSports is presenting new, interesting investment opportunities. While getting a direct exposure to the eSports theme is fairly limited, investors can target companies that generate significant revenue from video games and e-sports.
ESports, competitive gaming events conducted at a professional level, are becoming big business. According to Juniper Research, the global eSports and games streaming industry is expected to grow from $2.1 billion in 2021 to $3.5 billion by 2025. This represents a growth of 70% over the next four years. With its roots being in South Korea, Asia has led global eSports trends and growth for over the past twenty years.
