Shares of esports community and content platform Super League Gaming fell more than 20% on Tuesday after it priced its initial public offering (IPO) at $11 a share.
The company sold more than 2.27 million shares for $249.7 million, according to MarketWatch. Its IPO is expected to close on Feb. 28. Afterwards, it plans to use the net proceeds for working capital and general corporate purposes, including sales and marketing, product development, and capital expenditures.
“Today, Super League Gaming became a public company. It’s a big step,” the company said on its official blog. “One that means we can continue to grow and continue to bring you more – more experiences, more fun, more opportunities to play. We are excited to honor your treasured devotion, as you have fueled our spirit and inspired us on a daily basis.”
Super League Gaming operates in-person and online amateur esports events, as well as leagues, for titles like “League of Legends,” “Minecraft,” and “Clash Royale.” Often dubbed “the Little League of esports,” it gives people the chance to experience competitive gaming like the pros do, using proprietary technology to transform movie theaters, PC cafes, restaurants, and more into esports arenas.
The drop in shares suggests a poor reception for the company, which was founded in 2014. IPOs in general are currently suffering due to the recent U.S. government shutdown and market fluctuations, according to CNN. Only seven have come to market so far this year, a 71% decrease compared to the same time period in 2018. The technology sector is being hit especially hard, and it’s experiencing its longest IPO drought in nearly three years.