Nasdaq-listed esports company, Gamer Pakistan (NASDAQ:GPAK), raised $6.8 million from its initial public offering on Monday, with shares initially trading at $4.20. The company's inception was inspired by a 2012 football match between Pakistani and Indian students, which led to the establishment of an NCAA-type foundation for college sports in Pakistan.
The firm's main focus is organizing esports events at college and inter-university levels, with further plans to venture into other markets and live sports. Gamer Pakistan envisions long-term events where Pakistani college all-stars compete against international teams, a concept that has garnered interest from ESPN.
In order to expand its operation, Gamer Pakistan aims to establish 10 to 20 team franchises within Pakistan, charging each franchise between $50,000 and $75,000. The company will share Name, Image and Likeness (NIL) rights with the athletes involved. Despite these ambitious plans, the company has yet to turn a profit.
To attract major advertisers such as Procter & Gamble (NYSE:PG) and Unilever (LON:ULVR), Gamer Pakistan is partnering with ad-tech firm Trade Desk (NASDAQ:TTD). However, the company's financial sustainability has been questioned by auditor Mercurius & Associates LLP.
In addition to its esports endeavors, Gamer Pakistan also intends to tap into the rising demand for university sporting apparel in Pakistan. To drive this initiative, the company plans to appoint a Chief Revenue Officer. This move marks another step in the company's broader strategy to diversify its revenue streams and further its growth in the region's burgeoning esports market.
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