Blue Star Capital PLC (LON: BLU), the investing company with a focus on esports, payments, technology and its applications within media and gaming, noted that its investee company Guild Esports PLC has today announced its intention to float on the main market of the London Stock Exchange (LSE) later this year.
Guild, in which Blue Star holds 11.7% of the issued share capital, expects to be the first esports franchise to join the LSE main market. It plans to create a leading global franchise by establishing its own esports teams to compete in major esports tournaments and a player training and scouting infrastructure modelled on the talent academies pioneered by Premier League football teams over many years. David Beckham, a founding shareholder, intends to use his global influence and following to support the development of the company's brand and business.
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The esports market is forecast for further significant growth and the board of Guild said it considers the group provides shareholders with a unique opportunity to own a franchise that intends to create revenue through tournament winnings, digital marketing opportunities, sponsorship, membership, merchandise and promotional tours/events.
Guild initially plans to set up and field dedicated teams to compete in four online games, Fortnite; CS:Go; Rocket League and FIFA. Zeus Capital and Mirabaud Securities are acting as joint book runners and further details of the intended fundraise and valuation will be announced in due course.
Proceeds from Guild's fundraise are expected to be used to recruit new players, invest in the brand and expand the company's activities.
In a statement, Tony Fabrizi, CEO of Blue Star commented: "Guild has made exceptional progress since its launch last year and the planned listing represents an important step in its ambition of becoming one of the world's top ten esports franchises within three years."
In early trade in Wednesday, shares in Blue Star Capital were 6.7% higher at 0.24p.