US-Singaporean gaming hardware maker Razer on Monday launched an initial public offering in Hong Kong to raise up to US$550 million, IFR, a Thomson Reuters publication, reports.
Headquartered in San Francisco, Razer has been backed by several big-name investors including Intel Corp., Foxconn, IDC-Accel and Hong Kong billionaire Li Ka-shing, who invested via his venture-capital firm Horizons Ventures in Razer’s Series D this May.
The company is offering shares in an indicative range of HK$2.93 to HK$4.00 each, the report said, citing a term sheet.
According to IFR, cornerstone investors have already committed US$150 million to the company, including a US$20 million investment from Singapore sovereign wealth fund GIC Pte Ltd.
In Razer’s last round of venture capital investment in May, the company is valued at close to US$2 billion, as TechCrunch reports.
The share offer came just over a week after Singaporean “unicorn” (a startup that has achieved a valuation of over $1 billion) Sea Ltd. launched an IPO to raise US$884 million.
Razer was founded in 2005 by Min-Liang Tan and Robert Krakoff. The company has grown from producing a gaming mouse as its initial product to manufacturing laptops worth almost US$4,000 each. Selling gaming peripherals (76.2 percent of income in 2016) is its major source of revenue, while another source is the sale of laptops specially built for gaming.
But the company hasn’t been profitable lately. Last year it posted a US$59.6 million loss on a revenue of US$392.1 million. It was profitable in 2014 – to the tune of US$20.3 million – but plunged into the red with a US$20 million loss a year later.
According to the company’s IPO filing, around half of its revenue comes from the Americas, with the remainder split roughly between Europe and Asia. China represents 13 percent of its sales.
Razer has increasingly sought growth through multiple M&A activities. In 2016, it acquired THX, the iconic audio company founded by George Lucas in 1983 that focuses on developing premium audio and visual set-ups and providing audiovisual certifications.
Earlier this year, it acquired certain assets and intellectual property from smartphone startup NextBit, as Razer confirmed for the first time that it plans to launch its first mobile device by the end of 2017 or early next year.
Last month, Razer also published its proposal for a unified cashless payments system in Singapore, in response to an open request from the country’s Prime Minister Lee Hsien Loong.
The company’s IPO will be another high-profile tech listing in the city after selfie app-maker Meitu went public on the Hong Kong Stock Exchange in December 2016.
– Contact us at [email protected]