Gamer Pakistan Inc., the esports company based in Pakistan, is gearing up for an initial public offering (IPO) on the Nasdaq exchange, marking a first for Pakistani entities. The company plans to offer 1.7 million shares priced between $4 and $5 each, hoping to raise as much as $8.5 million and achieve a valuation of $128 million.
The New York-based investment bank, WestPark Capital Inc., is serving as the sole underwriter for the IPO. The shares will be listed on Nasdaq under the ticker "NASDAQ:GPAK". Gamer Pakistan operates primarily through its 90% owned subsidiary, K2 Gamer.
The company's CEO, James Knopf, who has previously collaborated with ESPN through his firm Pinstripe Entertainment Consulting, spearheads the operation. Gamer Pakistan's primary target demographic is the young population of Pakistan, aiming to engage them in esports events.
Despite these ambitious plans, Mercurius & Associates LLP, the auditor of Gamer Pakistan, has expressed financial concerns about the firm. As of now, the company does not generate any profit or revenue.
In 2023, Gamer Pakistan plans to organize at least 12 tournaments. The company aims to tap into a market of 36.8 million gamers in Pakistan that generates $208.7 million in revenue.
The IPO comes amidst a favorable climate for such offerings. The Renaissance IPO exchange-traded fund has reported a 23% gain this year.
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