Motorsport Games is a Miami-based developer of motorsport racing series games. On Jan. 6, the company said that it's offering about 2.35 million shares in the price range of $16–$18 per share. Motorsport Games seeks to use the IPO net proceeds to expand its gaming portfolio and secure additional license rights.
Motorsport Games makes waves in gaming
Motorsport Games is a developer and publisher of multi-platform racing games including for personal computers, game consoles, and mobile platforms. It's developing games for the NASCAR series and the British Touring Car Championship. Since its inception, the company’s NASCAR video games have sold more than 1 million copies for personal computers and game consoles. Motorsport Games competes with other virtual racing video game publishers including Microsoft, Sony, and Nintendo.
Motorsport Games' IPO date
Investors have been wanting to know about Motorsport Games' IPO date since the company revealed its plans to go public. Although the company hasn’t disclosed an IPO date yet, several reports suggest that the IPO could come as early as this week. Canaccord Genuity and The Benchmark Company are the listed underwriters for the offering. The company filed confidentially on September 8, 2020.
Motorsport Games' IPO stock price and ticker symbol
Motorsport Games plans to list on the Nasdaq under the ticker symbol "MSGM." The company plans to offer 2.35 million shares in the price range of $16–$18 per share, which would generate gross proceeds of $37.6 million–$42.3 million. Motorsport Games will likely price its shares on Jan. 12.
Motorsport Games will have about 16.35 million outstanding shares after the IPO. The company will likely have a market capitalization of about $262 million–$294 million at the proposed IPO price range.
Motorsport Games stock IPO looks like a buy
Motorsport Games stock IPO is a buy because the racing esports space will likely witness continued strong growth amid coronavirus-related lockdown measures. In 2019, the global gaming market was an estimated $151.55 billion. The global market will likely be more than $256 billion by 2025, according to a Mordor Intelligence market research report.
Motorsport Games' net revenue rose 68.4 percent YoY in the first nine months of 2020 to $16.1 million. The company reported a net income of $0.88 million in the first nine months of 2020 compared to a net loss of $2.9 million in the first nine months of 2019.
How to buy Motorsport Games stock
Affirm Holdings, Poshmark, PET Acquisition, and Playtika Holding are expected to price their IPOs this week. Recently, DoorDash and Airbnb opened significantly higher than expected on their public debuts.