Online gaming company eSports Mogul soars on ASX debut
Shares in online video game company eSports Mogul have surged on their ASX debut.
The company that listed through the shell of former iron ore hope Volta Mining hit the boards at 3.1 cents, more than 50 per cent higher than its two cents a share issue price. At 8.50am, its shares were trading at 2.9 cents a share.
The company raised $7 million through its initial public offering, capping off a recent wave of delayed backdoor plays hitting the boards before Christmas.
After a long-winded process that has been tarnished with multiple hold-ups following the ASX’s crackdown on the backdoor listing process, eSports Mogul will go live tomorrow, with plans to launch its “e-gaming platform” in the early stages of next year.
The company, which will have an office in Perth but its headquarters in Melbourne, has a 10-year licence to operate New York-based company eSports Hero’s online tournament platform in the Asia-Pacific region.
Former Volta Mining chief David Sumich, who will sit on the eSports board, said the platform would offer subscribers, initially Australia and Singapore, the ability to participate in free-to-enter video game tournaments.
The deal between Volta and eSports was announced in February. Despite the delay, Mr Sumich said they banked the $7 million in two weeks.
Mr Sumich described the delays as “frustrating” and believed extra scrutiny had been placed on the deal because the ASX did not understand the business.
“I don’t want to be critical of the ASX because they put these changes in for good reason but there was a lot of scrutiny on our business, which was surprising,” he said.
“It (the listing of eSports) was very close to not getting there and it cost a lot of money, about $500,000 in legal fees and listing fees.”
eSport’s listing is part of a pre-Christmas rush which has seen an influx of reverse listings finally jumping on the boards.
This week Perth-based medical marijuana play Zelda Therapeutics joined the ASX while Impression Healthcare, has former West Coast Eagles coach John Worsfold on the board, also listed. Israel-based Dotz Nano listed last week.