Razer surges after raising $530 million in Hong Kong IPO
Razer climbed on its first day of trading as the maker of computer accessories for gamers became the second technology stock in a week to jump in its Hong Kong debut. The stock rose to as high as HK£5.49, 41 percent above the £HK3.88 price of its initial public offering. The San Francisco and Singapore-based company raised HK£4.1 billion (£530 million) in the IPO.
Razer is the latest in a wave of technology listings in Hong Kong, coming just days after e-book publisher China Literature Ltd. soared 86 percent on debut. Razer, with backing from Singapore’s sovereign wealth fund and Hong Kong billionaire Li Ka-shing, produces a suite of products for gaming enthusiasts, from computer mice to performance laptops. It’s now expanding into smartphones with a £699.99 Android device that is designed specifically for gameplay.
Chief Executive Officer Tan Min-Liang, a gamer himself who owns about 42 percent of the company with his family, is set to become a billionaire following the public offering, according to the Bloomberg Billionaires Index. “One element supportive to the Razer share price is favorable sentiment towards IPOs these days,” said Ke Yan, an independent analyst who contributes to research aggregator Smartkarma. “Valuation aside Razer has a line up of heavyweight investors and apparently Hong Kong investors buy the Li Ka-shing story.” Key backers of the company are Singapore’s GIC and Li’s Horizons Ventures.
Other investors include Chinese developer Kingkey Enterprise Holdings Ltd., IDG-Accel and Intel Capital.
Credit Suisse Group AG and UBS Group AG were joint sponsors of the offering.
“We thought it was a great opportunity to be the first global tech company to list in Hong Kong,” Tan said in an interview with Bloomberg TV today, ahead of the trading debut. “We’ve got this interesting position to be ahead of the tastemakers” after building a business of hardware, software and services, he said.