Razer Raises $528M In Hong Kong IPO

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Razer has reportedly raised HK$4.12 billion (US$528.2 million) from its initial public offering (IPO) in Hong Kong, priced at HK$3.88 per share.

The games hardware maker, which is based in Singapore and San Francisco, saw an oversubscription from Hong Kong retail investors. Some 106 million shares allocated to the local investors had been snapped up in an estimated HK$34.55 billion (US$4.43 billion) of investor capital, according to South China Morning Post. The forecast was based on information from local brokers including Phillip Securities and UOB-Kay Hian.

Razer had planned to offer more than 1.06 billion in the IPO, priced between HK$2.93 and HK$4. Singapore-owned investment firm GIC, Chinese property developer Kingkey Group, and Indonesian Budi Hartono's investment fund were amongst cornerstone investors that committed to purchasing an estimated US$153 million of the IPO, reported IFR Asia.

Backed by Intel Capital and Hong Kong billionaire Li Ka-shing, Razer's existing investors included Singapore-owned Temasek Holdings and the younger brother of Singapore's prime minister, Lee Hsien Yang.

Razer's co-founder and CEO Tan Min-Liang is Singaporean.

In previous media reports, Tan said the company sold US$1 billion worth of products over the past three years and boasted a user base of 35 million. However, it reported losses totalling US$59.6 million last year on revenue at US$392.1 million, up from a loss of US$20.4 million in 2015 with revenue at US$319.7 million.

It acquired audio company, THX, in October last year in a deal in which Tan had refused to disclose financial details. He did say Razer would retain all staff and management of THX, which would continue to operate separately.

It also launched the Razer Phone last week, pitching it as a device built for gamers. The smartphone was the result of the acquisition of Nextbit, with which Razer already was working alongside to develop the latter's mobile device.