Esports operator VSPN intends to list in Hong Kong

Source | Official account: capitalwatch

According to local media reports, Shanghai-based esports operator VSPN submitted a prospectus to the Stock Exchange of Hong Kong for listing on its main board. Leading financial services firms such as Bank of America Securities, CICC and Credit Suisse will be the underwriters of the transaction.

VSPN is Asia's leading provider of total esports solutions, offering services including competitions, content and marketing. It owns a number of well-known games and cooperates with industry giants such as Riot Games and Blizzard Entertainment, and Tencent (HKEX: 00700; OTC: TCEHY) holds a 13.54% stake in the company.

In addition to being among the best in the Chinese market, VSPN also has an international presence in other markets, including South Korea, Southeast Asia and Europe. Last year, the company further consolidated its leading position in the Chinese market, strengthening its global reach by acquiring Banana Game Media in January and Logging Fore in esports communities in March.

According to the prospectus, VSPN reported revenue growth of $207.8 million in the first three quarters of 2021, up 144% year-over-year. Since its inception in 2016, VSPN has received investment from a number of large companies, including SkyMap Capital, Kuaishou (HKEX: 01024) and Morgan Stanley Asia Private Equity. Crunchbase reported that the company raised a total of $160 million in four funding rounds. A few months ago, there were also rumors that the company was considering an initial public offering (IPO) in the United States, but at the time the company said it had no IPO plans.

VSPN said in the prospectus that the net proceeds from the IPO will be mainly used for research and development to upgrade its business model and strengthen its infrastructure to better improve the quality of content, expand its presence in overseas markets and expand its product range.

VSPN holds a leading position in the lucrative esports market. In recent years, the popularity of the esports market has continued to explode, especially in China. Statista estimates that the size of China's esports market will exceed $33.9 billion by 2022, a figure that more than doubled between 2017 and 2021. Globally, the esports market is expected to grow by $1.62 billion in 2024.