Despite an unexpected bump in the road, Motorsport Games boosted its IPO size.
The Miami-based racing games developer was preparing to sell shares on Tuesday, when CEO Dmitry Kozko was accused in a lawsuit of “shortchanging investors” after acquiring an additional, discounted minority stake in 704Games — Motorsport’s largest revenue driver.
The accusation didn’t slow down the IPO.
Motorsport raised $60 million with shares priced at $20. With an initial market cap of $340 million, the stock started trading on the Nasdaq today. Shares jumped as much as 83%.
Along with developing games, Motorsport is a publisher and esports ecosystem whose titles include the official NASCAR video game franchise. It also acquired the exclusive rights for the British Touring Car Championship games.
Through the first nine months of 2020, the company reported a 68% year-over-year revenue increase with $2.4 million in net income, up from $4.2 million in losses the year prior.