Astralis Group has shared the prospectus and plans for its upcoming initial product offering (IPO) on the Nasdaq First North Growth Market.The parent company of Astralis, Origen, and Future FC is planning to offer shares from November 18-29th.
Astralis Group is looking to raise between DKK 125 million (£14,307,500) and DKK 150 million (£17,170,833). Priced at DKK 8.95 (£1.02) per share, the proceeds from the offering – should it prove successful – are said to be distributed as follows: 50-60 percent on league buy-ins, 15-20 percent on investment in international reach, 10-15 percent on product development, and 10-15 percent on brand development.
The company has a three-year strategy for growth that involves scaling and developing its performance model, broadening its brand portfolio, and optimising its commercial platform.
“Revenue from sponsorships is expected to double from 2019 to 2020 and increase with 40% from 2020 to 2021,” according to the prospectus. Astralis Group is currently in sponsorship deals with Audi, Jack & Jones, Unibet, Logitech G, Secretlab, OMEN by HP, and Turtle Beach.
Astralis Group is aiming to bring in net revenue of between DKK 40-43 million (£4.6-4.9 million) in 2019, between DKK 60-70 million (£6.9-8 million) in 2020, and between DKK 85-100 million (£9.7-11.5 million) in 2021.
In the prospectus, Astralis Group claims to have knowledge of “various initiatives within the Counter-Strike ecosystem for the establishment of new league structures” where participation could cost up to €2 million (£1.7 million). It also states that, with the investment, it would repay a loan that was taken to partly pay the entry fee for Riot Games’ LEC.
Nikolaj Nyholm, Co-CEO of Astralis Group discussed the formation of Astralis Group in the brochure: “In August 2019, Jakob [Lund Kristensen] and I bought out the teams to create Astralis Group. Together with an agile organisation of experienced, innovative profiles from traditional sports, esports, entertainment, media and tech we have set out to create the strongest teams and most engaging brands globally.”