America’s biggest IPOs catch the eye of South Asian investors

DUBAI: The Southeast Asian gaming market is expected to grow at an 8.5 percent 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 percent 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 percent in one day. In 2021, the average first day gain after an IPO was 16 percent. 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 E-sport IPOs:

1. Esport Technologies (NASDAQ: EBET) 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 percent from their IPO pricing level. Shares of EBET are up 33.36 percent premarket to $48.57 vs. the IPO pricing mark of $6.00 per share.
2. 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 e-sports is presenting new, interesting investment opportunities. While getting a direct exposure to the e-sports theme is fairly limited, investors can target companies that generate significant revenue from video games and e-sports.

E-sports, competitive gaming events conducted at a professional level, are becoming big business. According to Juniper Research, the global e-sports 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 percent over the next four years. With its roots being in South Korea, Asia has led global e-sports trends and growth for over the past twenty years.