Singapore gaming firm Razer rises 18% in Hong Kong debut

Min-Liang Tan, founder and CEO, Razer. Photo: Razer's Facebook page

Shares in Razer Inc, backed by Intel Corp and Hong Kong billionaire Li Ka-shing, surged 18 percent in their Hong Kong stock market debut on Monday, amid growing retail demand for new technology stocks in the Asian financial hub.

Razer said last week it raised about HK$3.9 billion ($500 million), excluding underwriting and other expenses, after pricing the IPO of 1.063 billion primary shares near top of the HK$2.93-HK$4.00 range.

The Razer stock opened at around HK$5 on Monday and extended its gains to as much as HK$5.49 in early trade, up 41.5 percent compared to its IPO price of HK$3.88 per share.

The stock, however, later came off the high and ended at HK$4.58, up 18 percent for the day, giving the company a market value of HK$40.8 billion ($5.23 billion).

The company’s strong debut is the latest in a string of stellar stock listings by technology-based companies in Hong Kong in the recent months, with strong interest mainly from retail investors.

Last week, Tencent’s e-book unit China Literature Ltd saw its shares surge more than 80 percent in their debut, as Hong Kong investors embrace a rush of tech listings.

Shares in ZhongAn Online Property & Casualty Insurance Co jumped 18 percent in their debut in September, after the company raised $1.5 billion in Asia’s biggest-ever financial technology IPO.

The excitement surrounding such offerings bodes well for expected listings from other fintech giants in Hong Kong, including Alibaba affiliate Ant Financial and peer-to-peer lending and wealth management platform Lufax.

Underscoring the demand for technology issues, the retail portion of the Razer IPO gathered demand that was 291.24 times the number of 106.36 million shares on offer, the company said on Friday.

The company, which is headquartered in Singapore and the United States, was founded in 2005 by Min-Liang Tan and Robert Krakoff and has grown from producing a gaming mouse as its initial product to manufacturing laptops worth almost $4,000.

In 2016 it bought assets from a company previously known as THX Ltd, which was founded by “Star Wars” filmmaker George Lucas, and this year it acquired certain assets and intellectual property from mobile phone manufacturer Nextbit Systems.

It plans to use the IPO proceeds to develop new verticals in the gaming and digital entertainment industry, including mobile devices, audio visual technology and live-streaming, as well as to fund acquisitions as it expands its ecosystem.

As part of the IPO process, Razer secured $150 million in commitments from cornerstone investors, including a $20 million investment from Singapore sovereign wealth fund GIC, Thomson Reuters publication IFR reported last month.

Also Read:

Tencent-backed China Literature raises $1.1b in Hong Kong IPO

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.