15 June,2023 01:07 PM IST | Mumbai | BrandMedia
eSports fanatics can now invest in American IPO`s. (Stock photo)
Buying Esports stocks online and their subsequent performance is "all the rage" in America, and now Indian investors can finally participate. Recently, a few Esport IPOs have come to market with an incredible surge in both demand and price for shares in these companies.
The Esport market is very large and growing at an incredible pace. Now, Indian investors will also have a chance at purchasing IPO shares of yet another Esport company offering shares on the US NASDAQ stock market.
IPO pops are not new. According to data from Jay Ritter, the average IPO pop from 1980 through 2020 was 18.4% in one day. In 2021, the average first-day gain after an IPO was 16%. Using all common stock IPOs between 2000-2020, we confirm previous evidence of positive average first-day IPO returns of 21.11 percent in one day.
Recent Esport IPOs:
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According to Securities and Exchange Board of India (Sebi) data, new dematerialized or demat account additions rose to an all-time high of 10.7 million between April 2020 and January. This is an increase of more than double the new accounts opened in FY20 at 4.7 million. Around 4 million new accounts were added each in FY19 and FY18.
As another example, the latest Esport IPO, Mobile Global Esports Inc. or MoGo, NASDAQ symbol MGAM (coincidently doing its business in INDIA), traded 61.3 million shares (heavy volume), in the first 10 days of trading (all over the IPO price of $4) and traded as high as $20 per share and had an average closing price of $7 per share over those first 10 trading days. Now, Click-IPO is expected to be offering the next esport stock and its shares to the public within the next few weeks on its app.
This time, Indian Nationals can subscribe for the IPO shares through a Brokerage Firm named ClickIPO. ClickIPO has participated in more than 200 recent U.S. IPO, and their nearly 5,000,000 integrated accounts, through their app (which integrates with an International Brokerage Firm), allow investors the opportunity to secure and participate in desired IPOs and their shares through their app - ClickIPO.
ClickIPO is an app which can be downloaded in India, and then "willing IPO risk takers" or "day-traders" will have a chance to own some of the Esport stock right at the $4 per share IPO price and sell it right back into the market if they so choose. Now, through ClickIPO, Indian Nationals can buy/trade/sell IPO shares in American IPOs offered and traded on NASDAQ Markets.
Earlier, it used to take around 60 days to buy/sell stocks in stock markets, and the investor also had to go through loads of paperwork. But thanks to the Internet, this wait has been curbed, and in the last ten years, Indian capital markets have recorded 1488% of growth in exchange turnover.
As a result, the total number of demat accounts in India has now increased to 10.6 crores (100.6 million) in November 2022, 37% higher than a year earlier.