NIP Group starts trading

Esports holding company NIP Group is poised to commence trading on the NASDAQ Stock Exchange today, following the announcement of its initial public offering (IPO) pricing.

IPO Details

The offering is expected to close on July 29th, pending regulatory approvals. To mark the occasion of its public listing, NIP Group Co-CEOs Hicham Chahine and Mario Ho will ring the NASDAQ Opening Bell when trading begins around 9:30 am ET.

NIP Group’s stock will be listed under the ticker ‘NIPG’. The company plans to release 2,250,000 American depositary shares (ADS) at a price of $9, amounting to over US$20 million dollars in total. Each ADS represents two Class A ordinary shares of NIP Group. Additionally, underwriters have the option to purchase up to 337,500 additional ADSs.

Market Context

NIP Group’s IPO arrives amidst a challenging period for esports companies on the stock market. Notable organizations like FaZe Clan and Astralis have faced difficulties, with FaZe being acquired by GameSquare and Astralis opting to delist last year.

NIP Group is an esports and gaming conglomerate formed through the merger of Swedish esports organization Ninjas in Pyjamas and Chinese esports brand ESV5. The merger was finalized in early 2023, with the LPL team Victory Five rebranded as Ninjas in Pyjamas. The Group operates various entities, including eStar Gaming, Ninjas in Pyjamas, and Shinobi Esports.

Earlier in its IPO filing, NIP Group disclosed financial records for 2022 and 2023, showing an increase in total net revenue from US$65.8m to US$83.7m and a rise in gross profit from US$3.7m to US$7.2m. Despite these gains, the company’s net loss increased from US$6.3m to US$13.3m in 2023.

NIP Group joins other esports organizations like Enthusiast Gaming and GameSquare (parent company of FaZe Clan) on the NASDAQ, while Astralis, part of NASDAQ First North Growth Market Denmark, voted to delist in September 2023.

Ninjas in Pyjamas is one of 30 teams selected for the Esports World Cup Club Support Program, which gives teams a one-time six-figure stipend if an organization is willing to enter new esports as well as additional funding each year if they drive viewership and fan engagement to the Esports World Cup.