Gaming firm Razer rises 18 per cent in Hong Kong debut

Gaming firm Razer rises 18 per cent in Hong Kong debut

03:29
Shares in Razer Inc, backed by Intel Corp and Hong Kong billionaire Li Ka-shing, surged 18 per cent in their Hong Kong stock market debut on Monday (Nov 13), amid growing retail demand for new technology stocks.

HONG KONG: Shares in Razer Inc, backed by Intel Corp and Hong Kong billionaire Li Ka-shing, surged 18 per cent in their Hong Kong stock market debut on Monday (Nov 13), amid growing retail demand for new technology stocks.

Total trading volume of the company reached 893.87 million shares with a total turnover of approximately HK$4.42 billion (US$567 million), Razer Inc said in a news release.

It closed at HK$4.58 per share, 18 per cent higher than the IPO price of HK$3.88. The intra-day high was HK$5.49 per share, 42 per cent higher than the IPO price. 

"Today is a very special day for Razer and we are delighted with the high level of interest investors have shown in our Offering," Razer CEO and co-founder Tan Min-Liang said. "This IPO represents a milestone for us to take our motto 'For Gamers. By Gamers.' to the next level."

"I believe this is a truly incredible opportunity for the Razer fans, gamers all over the world and those passionate about the gaming community to become shareholders of Razer, and to join us on our mission," he said.

Razer said last week it raised about HK$3.9 billion, 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 company's strong debut is the latest in a string of stellar listings by technology-based companies in Hong Kong, with strong interest from retail investors.

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

Shares in ZhongAn Online Property & Casualty Insurance Co jumped 18 per cent in their debut in September, after the company raised US$1.5 billion (S$2 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 US, was founded in 2005 by Tan Min-Liang  and Robert Krakoff and has grown from producing a gaming mouse as its initial product to manufacturing laptops worth almost US$4,000.

"The IPO is just the beginning and we will continue disrupting the gaming industry with the Razer ecosystem of hardware, software and services, while creating value for our shareholders," Mr Tan said. 

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.

Source: Reuters/CNA/kc

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