DRX Set to Launch IPO on Singapore Exchange

South Korean esports organization DRX is gearing up to pursue a listing on the Singapore Exchange, reigniting its public-market aspirations four years after an unsuccessful attempt at a domestic IPO.

According to a report from a financial publication, DRX is set to apply for a preliminary listing review with the Singapore Exchange in mid-August. The organization is currently in discussions with SGX and has chosen a local financial institution to guide the process, as indicated by sources in the investment-banking sector.

While DRX has not officially confirmed its listing intentions, there was no prospectus or issuer announcement found in SGX’s public database or the Monetary Authority of Singapore’s prospectus portal as of late July.

This absence doesn’t necessarily contradict the earlier report. Under SGX’s Mainboard listing rules, potential applicants can consult with the exchange prior to submitting a formal application. Typically, a prospectus is filed later in the process, after SGX has reviewed the application and issued an eligibility-to-list letter.

The timing is crucial, as the report suggests DRX has recently submitted its preliminary application, while the article indicates that the application is expected in mid-August. The latter detail aligns with DRX still being in the consultation phase.

If successful, this move would make DRX the first South Korean esports organization to go public. The publication noted that a valuation has yet to be finalized, although discussions have placed it in the hundreds of billions of won.

Details regarding the targeted SGX market, proposed offering size, intended use of proceeds, and post-listing ownership structure remain undisclosed.

This would mark DRX’s second attempt to enter public markets. In September 2022, the organization announced it had appointed a lead manager for a proposed KOSDAQ IPO aimed for 2024, with ambitions to become South Korea’s first publicly traded esports company.

That timeline has since passed without a listing, and DRX has not provided a public explanation for the outcome.

This renewed effort is particularly significant as DRX has been under the control of private-equity firm ATU Partners since 2019. ATU acquired the organization, previously known as DragonX, through its esports growth fund, which is valued at ₩20.2 billion ($14 million). The fund was initially reported to have around $17 million in capital, with limited partners including notable names in the gaming industry.

ATU’s strategy at the time included expanding DragonX beyond South Korea and leveraging its portfolio to connect Asian and North American esports markets. The firm had also acquired a California-based esports talent agency prior to its public launch.

The reported plan for SGX should not be seen as a direct continuation of those earlier expansion goals. While ATU’s 2019 strategy focused on China and the U.S., the proposed Singapore listing is linked to DRX’s recent efforts to grow its presence in Southeast Asia.

Nonetheless, earlier reports indicate that international expansion and enhancing the organization’s value beyond domestic competition were integral to ATU’s investment strategy from the beginning.

Since then, DRX has attracted additional strategic investors, including a recent undisclosed investment from South Korean game developer Wemade following DRX’s victory at the 2022 League of Legends World Championship.

A public listing could offer DRX additional growth capital and a potential exit strategy for ATU and other investors. However, it remains unclear whether the proposed transaction would involve new shares, existing shareholder sales, or a combination of both.

The choice of Singapore is tied to DRX’s strategy to expand its sponsorship and content operations throughout Southeast Asia. This approach has already gained traction, as DRX hosted its first overseas LCK team roadshow in Hanoi, attracting around 12,000 attendees for a three-day event featuring LCK match recreations and fan activities.

Additionally, DRX has entered a naming-rights partnership with a Korean brokerage and competes under the Kiwoom DRX name. The organization continues to enhance its commercial portfolio, including a two-year hardware partnership with a major gaming brand.