VC-backed Razer raises $504m in Hong Kong IPO
Razer, a manufacturer of gaming peripherals with several venture capital backers, has raised HK$3.93 billion ($504 million) in its Hong Kong IPO.
The company sold 1.06 billion shares at HK$3.88, according to a filing. The offering was near the top of the pricing range set in the prospectus and was significantly oversubscribed.
Razer will use 25% of the net proceeds from the offering to develop new verticals in the gaming and digital entertainment industry. In particular, the company is targeting mobile devices, audiovisual technology, live-streaming and broadcasting services and digital payments. Razer plans to launch its first mobile device by the end of 2017.
Another 25% of proceeds will be used to finance the acquisition of companies that complement Razer’s business, while both research and development, and sales and marketing, have been allocated 20% each.
Razer was founded in 2005 by ex-lawyer Min-Liang Tan and Robert Krakoff, and has headquarters in Singapore and San Francisco. Currently, most of the senior management team is based in Singapore and the majority of the company’s business operations are managed from there.
Between 2007 and 2017 Razer issued six rounds of preferred shares. Its VC backers include IDG Capital, which invested $50 million in the company in 2011. The following year Singapore’s Temasek Holdings committed $10 million in 2012, while Horizons Ventures – an investment firm controlled by Hong Kong tycoon Li Ka-Shing – led a consortium including Binary Capital and Foxconn Technology Group to commit $43 million earlier this year.
Of the company’s VC investors, IDG holds the largest stake, with 2.9% following the IPO. Temasek has 1.2%, Horizons has 1%, and Binary has 0.4%. None of the VC investors sold any shares in the offering.
Razer’s target consumers are active gamers, estimated to number as much as 2.7 billion worldwide by 2021. The company manufactures hardware devices, including headphones, joypads and mice, that are intended to provide gamers with a competitive edge and immersive experience.
More than half of Razer’s revenue comes from the Americas, with Asia accounting for 22.9%. The company posted revenue of $392.1 million in 2016, up from $319.7 million the previous year. However, its net loss widened to $59.6 million from $20.4 million over the same period.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.