Mobile Global Esports Revises IPO Terms: More Shares, Lower Price Range (Pending: MGAM)
Ahead of an initial public offering scheduled for next week, India-focused esports platform Mobile Global Esports (MGAM) has increased the size of its planned IPO, while lowering its projected price range.
In a folder modified with the U.S. Securities and Exchange Commission, MGAM said it would offer 1.5 million shares in the IPO at a price of between $4 and $5 per share. A similar disclosure in June showed the company planned to sell 1 million shares at a price between $6 and $6.75.
The latest regulatory submission also indicated that certain shareholders would also offer shares as part of the transaction. These selling shareholders plan to offer 2.3 million shares.
This also represented an increase over the company’s previous expectations. In June, the selling shareholders had reserved 1.5 million shares in the offer.
The company expects to raise $6 million in gross proceeds from the offering, or approximately $5.4 million not including subscription discounts. The money from the sale of the shares of the selling shareholders will not go to the company.
Mobile Global Esports (MGAM) is headquartered in San Clemente, California, but focuses on the emerging esports market in India. The company was first organized in March 2021 and had not reported operating income and had no significant revenue-generating operations as of March 31, 2022.
MGAM said proceeds from the IPO will be enough to meet its cash requirements for about two years. The company plans to use some of the funds to hire additional staff in India and expand its technology.
Looking at the latest headlines from the IPO market, Virax Biolabs surged in its public debut on Thursday.