SportsHero kick s goals on debut
Sports focused social media group, SportsHero (ASX: SHO), has made an impressive debut on the ASX with its shares hitting a high of 5.9 cents before closing at 5.5 cents, a 10% premium to the IPO price of 10 cents.
It should be noted that this is an early stage play and share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this high risk stock should seek independent financial advice.
The group comes to the market following the reverse takeover of Nevada Iron (ASX:NVI), aiming to take advantage of increasingly strong global interest in sport and all related aspects including the sale of merchandise, sports tipping and gambling.
Tapping into industry data, management noted that the fantasy sports market in the US alone had been valued at $70 billion annually. With much of the activity taking place over smart phones, SHO noted that there are over 1 billion users of these devices across the Asia-Pacific region.
In May 2016, SHO forged a relationship with listed Singapore group YuuZoo Corporation which will facilitate marketing of the SHO app across YuuZoo’s network and partner platforms, providing the company with access to a user base of 118 million, as well as a significant number of TV viewers across 164 countries.
Management’s strategy is to capture a robust share of the Chinese market where sports viewing and gambling is growing at a rapid rate. Any initiatives that assist in penetrating Asian markets are likely to be viewed as positive, and could perhaps provide further share price momentum.