Esports Company VSPN Files Prospectus for Hong Kong Listing

Esports Company VSPN Files Prospectus for Hong Kong Listing

VSPN, a Chinese esports company with massive clout in the competitive video gaming industry, has filed a prospectus with the Hong Kong Stock Exchange, preparing to go public through an Initial Public Offering (IPO).

The news was originally reported by local media outlet IPO Zaozhidao and suggests that the Shanghai-based esports giant will seek to capitalize on its strong position with esports ventures. The company has been an infrastructure provider for numerous esports events across 29 established games. These include Honor of Kings and PUBG: Mobile, which are very popular in Asia.

The company has been busy with other aspects of the industry, too, helping with content production, talent incubation, management, and more. Realistically, VSPN is a 360-degree full-service esports company involved with every aspect of esports development. The company is also the most prominent tournament host in Asia, and its preeminence is unlikely to be challenged any time soon.

VSPN is also a focal point of significant investment by the likes of SIG Heiner Asia, Morgan Stanley Private Equity Asia, Tencent, PAC Capital, Kuaishou, and many others. Tencent alone holds a 13.54% stake in the company, and the company is further linked with VSPN through Hou Miao, VSPN’s non-executive director and Tencent’s own chief of the company’s esports division.

Tapping in the Public Purse for Further Growth

The IPO is a strategic move that would hopefully allow VSPN to create new opportunities for esports in the region and beyond. The company has outlined a plan that will involve heavy investment in research and development to create content, quality gaming experience, and build a stronger infrastructure for esports as a whole.

VSPN hints at expanding to overseas markets, with Asia alone being one of the fastest-developing esports regions which have not been fully tapped and harnessed just yet. VSPN does rely a lot on its tournament legacy and experience in hosting groundbreaking events for numerous games. It has been spearheading events for titles such as Clash of Clans: Royal War, Crossfire, and Honor of Kings, among many others.

VSPN is also a unique company that amasses talent from across the full spectrum of the industry. It presently has partnerships with the most established esports and gaming companies in Asia, to name Krafton, Garena, and not least Tencent. All of this has been reflected in the company’s strong financial results so far. The company’s last quarter results summed up the three quarters of FY 2021, with VSPN managing to notch up revenue of $208 million. This accounts for a 144% year-over-year growth from 2020.

The company is also not diversifying too heavily away from its reliance on hosting and managing esports events, which accounts for an estimated 60% of all of its revenue. The acquisition of Banana Gaming & Media gave VSPN another boost. Meanwhile, the company has been focusing heavily on Generation Z gamers, even though China introduced a crippling ban on video gaming. This has not slowed down VSPN.