Mixed martial arts firm ONE Championship lays groundwork for a U.S. IPO

Flower One Holdings

31/08/2022 09:57

By Andrew  Mills
    DOHA, Aug 31 (Reuters) - Group ONE Holdings, the parent
company of martial arts and gaming firm ONE Championship, is
planning for an initial public offering (IPO) in the United
States once market conditions are optimal to drive its global
expansion, its chief executive said.
    To lay the ground work, the firm is changing its legal
domicile to the Cayman Islands from Singapore, Chatri
Sityodtong, who is also ONE's founder, told Reuters in a Zoom
interview earlier this month. 
    ONE Championship has become Asia's largest sports media
player, according to Nielsen, a global audience measurement and
data analytics company.
    In June, Sityodtong told an economic event in Qatar that ONE
is valued at $1.4 billion.
    The company does not have an expected date for the IPO. 
    "A few things have to happen, as kind of preconditions. You
have to be in a strong stock market, so you're getting the right
valuation, but also so that the stock performs after you go
public," Sityodtong said.
    A strong global economy was also important to ensure the
company has "tailwinds", he said, adding that neither of those
preconditions are in place now.
    A potential IPO is one of several options ONE is considering
in order to raise capital, Sityodtong said, without elaborating.
    The startup has backing from Sequoia Capital, its largest
institutional investor, and Qatar Investment Authority (QIA).
    ONE now draws an average of 50 million viewers per event
compared to around 40,000 viewers six years ago, Sityodtong said
in June.
    "The next step for us is definitely going global. Whether
we're hosting events in Qatar or Europe, or North America, those
are all in the plans for the next 12 months or so," he said. 
    ONE has signed a partnership with Media City Qatar following
Qatar's investment in the company eight months ago. Next year,
it will shoot part of its Netflix reality series 'The
Apprentice: ONE Championship Edition', in the Gulf Arab state. 
    It also plans to establish studios in the Qatari capital
Doha to host live martial arts events and is considering opening
a regional headquarters in the Gulf Arab state, Sityodtong said.

 (Reporting by Andrew Mills; Editing by Christian Schmollinger)
 ((Andrew.Mills@thomsonreuters.com;))