Astralis Group became the first esports team to launch an initial public offering (IPO) today.
Astralis Group went public on the Nasdaq First Growth Market Denmark, offering 16,759,777 shares at 8.95 Danish Krone ($1.33) apiece, according to ESPN’s Jacob Wolf. The IPO is only being offered in Denmark but it’s available through the use of brokers.
“The Danish organization is the first esports team ownership group to go public, with the IPO only being offered in Denmark but available via brokers,” Wolf said.
Astralis Group may be a pioneer, but launching an IPO can potentially set the precedent for other organizations willing to take the plunge. With esports quickly becoming one of the biggest industries in the world, investing in the scene may seem like a no-brainer.
Global esports revenue is expected to hit $1.1 billion this year, marking a 26 percent year-on-year growth, according to a report by research group Newzoo. The 2019 League of Legends World Championship finals peaked at 2.9 million viewers, almost doubling last year’s totals. And Comcast Spectacor and The Cordish Companies put together a $50 million plan to build the “largest new-construction, purpose-build esports arena in the Western Hemisphere” within the Philadelphia Sports Complex.
The industry is growing rapidly and Astralis Group’s decision to open up shares to the public further cements esports as a titan to rival film, music, and sports.
Even though esports is certainly trending upward, some may be reluctant to invest in the relatively new field.
“In this respect it is also our responsibility to help educate the market through a continuous high level of information,” Astralis Group chief executive officer Nikolaj Nyholm told Bloomberg.
The Danish organization’s Counter Strike: Global Offensive team, Astralis, is the top-ranked squad in the world, according to HLTV. Astralis Group also owns League European Championship (LEC) team Origen and FIFA’s Future FC.