Gamer Pakistan Inc. (NASDAQ: GPAK) is poised to make history as the first Pakistani company to trade on the National Association of Securities Dealers Automated Quotations Stock Market (NASDAQ) and the first AI-based esports entity to be listed in the United States.
The company recently conducted its initial public offering (IPO), offering 1.7 million shares at $4 each to raise $6.8 million. Upon completion of the deal, with an expected 25.6 million outstanding shares, the company’s market value will reach $102.4 million.
Leading Gamer Pakistan is CEO James Knopf, a seasoned entertainment sales professional with over 25 years of experience in content distribution partnerships across various platforms, including TV, digital, mobile, and over-the-top (OTT) services. Notably, Knopf’s Pinstripe Entertainment Consulting firm collaborated with ESPN in 2019 to host the inaugural NCAA College Esports Championship, broadcast on ESPN3.
Gamer Pakistan operates primarily through K2 Gamer, of which it holds a 90 percent ownership stake. However, it’s important to note that the company currently generates no profit or revenue. The company’s auditor, Mercurius & Associates LLP, has expressed concerns about its ability to continue as a going concern.
GPAK’s strategic plan for 2023 includes organizing a minimum of 12 events to address its revenue shortfall. Initially targeting colleges and institutions, the company has ambitions to expand into other sectors and explore live sports in the future.
According to GPAK’s prospectus, Pakistan has witnessed rapid growth in mobile phone subscriptions, covering nearly 80 percent of the population in 2020, compared to just 0.2 percent in 2000. In 2022, it is estimated that 36.8 million individuals in Pakistan engaged in gaming, a number expected to rise to 50.9 million by 2026. The video game industry in Pakistan is projected to generate around $208.7 million in revenue in 2022, increasing to $227.4 million by 2026.
