Razer, a US-based gaming equipment provider whose investors include semiconductor maker Intel, will raise HK$4.12bn ($528m) when it floats in Hong Kong, IFR reported today.
The company priced approximately 1.07 billion shares at HK$3.88 each, near the top of the initial public offering’s HK$2.93 to HK$4.00 range.
Razer produces a range of gaming accessories, such as specialist keyboards, headsets and laptops, as well as configuration and launcher software, and also maintains a digital currency and a range of eSports teams.
The company’s net losses climbed from $20.4m in 2015 to $59.6m in 2016, though its revenue increased from $319.7 to $392m in the same period, as its earnings from its systems grew by more than 140%.
Singaporean state-owned investment firm GIC had agreed to buy $20m of shares in the IPO, part of a $150m commitment by cornerstone investors. The underwriters have the option to buy a further 159 million shares, which would boost the IPO size to approximately $607m.
Razer had raised at least $243m in funding prior to the offering, as well as an undisclosed amount from Intel’s corporate venture capital unit, Intel Capital, in 2014 at a $1bn valuation.
Mobile app developer Hangzhou Liaison Interactive Digital Grid invested $75m in Razer at a $1.5bn valuation in February 2016, and its other investors include Sirius Financial Group, IDG-Accel China, HF Technology Investment, Redmount Ventures, Horizons Ventures and Binary Capital.
Credit Suisse (Hong Kong) and UBS Securities Hong Kong are joint sponsors for the IPO, while Credit Suisse (Hong Kong) and UBS Hong Kong Branch are Joint global coordinators and joint bookrunners.
Credit Suisse (Hong Kong), UBS Hong Kong Branch, China International Capital Corporation Hong Kong Securities, CMB International Capital, ICBC International Capital and UOB Kay Hian (Hong Kong) are the joint bookrunners. Evercore Asia advised Razer for the offering.