IPO: New listing for Mobile Global Esports raises nearly $6M

San Clemente-based Mobile Global Esports Inc. (Nasdaq: MGAM), which is working to develop university esports competitions using mobile telephones in India, went public last week, raising about $6 million. Its IPO generated around 750 million impressions around the world, company officials said.

Mobile Global Esports, also known as MOGO, plans to use the proceeds of its modestly sized IPO to expand staff in India and pay for its marketing, streaming and event expenses, regulatory filings indicate.

The company is currently developing a proprietary esports platform to increase player and viewer engagement as an additional revenue stream. The platform will deploy tech exclusive to the company, which reduces file sizes about 66%, keeping data storage costs low.

“People who have older smartphones in India will have a better experience playing on our platform rather than on any of the others,” MOGO CEO Dave Pross told the Business Journal.

“They’ll have higher resolution and lower bandwidth,” added MOGO Head of Investor Relations Rich Schineller.

Before going public, MOGO downsized its IPO from $16 million to $6 million, according to SEC filings.

The decision came as a recommendation from the company’s underwriter, WestPark Capital Inc., company officials said.

The underwriters “always have to try to position [the company] best for the market,” Pross said. “And obviously, the market was very accepting and excited about it, so the stock price went up.”

Former NFL quarterback Kurt Warner, a two-time MVP, has a postoffering stake in the company of 5.6% through the Kurt & Brenda Warner Revocable Trust, filings indicate. When MOGO went public, shares were priced at $4. At press time, its stock was up 5.8% at $6.57 per share and a $120 million market cap.