In a historic development, a Pakistani business named K-2 Private Limited is set to go public and will be listed on the NASDAQ stock exchange in the United States. The company, funded and owned by the US parent Gamer Pakistan Inc., operates in the thriving Esports industry and is known for producing Pakistan’s largest National University & college tournaments. These tournaments are regionally organized and culminate in a national championship team. Additionally, K-2 collaborates with Esports Exclusive to have its teams compete against India’s top team through the Rival Nation’s Network.
Esports has been gaining tremendous traction worldwide, and Pakistan is no exception. The Pakistani government has officially recognized esports as an identifiable sport and a promising area for growth, which further bolsters the industry’s potential.
According to Forbes in America, the top ten ranked Esports teams in the world are worth a staggering $1/4 billion USD each. Pakistan already boasts two players ranked in the top 25 globally. With such promising prospects, the decision to go public on NASDAQ is expected to generate considerable interest.
Esport stocks on NASDAQ have seen extraordinary first-day rises of up to 500 to 700%. While long-term performance has varied, the industry’s potential for growth remains significant. Esports is one of the fastest-growing sports in terms of participation and viewership worldwide, with a massive following among the younger generation.
Traditionally, IPO shares were inaccessible to common retail investors, primarily reserved for large retail investors or institutional investors. However, with the rise of the fin-tech industry and companies like Click-IPO, which offers a free app for any investor to purchase IPO shares, the landscape has changed.
Historical data indicates that IPOs do show returns on their first day of trading, with IPO pops averaging around 18.4% from 1980 through 2020. In 2020, the average first-day IPO gain surged to an impressive 36%, breaking the previous record set in 2013. While nearly a third of all IPOs decrease in value on their first day, over 70% close higher than their IPO price.
As the esports industry continues to flourish, K-2 Private Limited’s decision to go public and list on NASDAQ opens up new opportunities and signifies Pakistan’s rising presence in the global esports arena. The debut of a Pakistani company on such a prominent stock exchange marks a momentous occasion for the country’s business landscape.
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