Razer Inc. is planning to go public in October in a Hong Kong IPO that will value the company at up to $5 billion. That is what an undisclosed source, familiar with company’s ventures, announced earlier today.
Razer, which is mainly associated with gaming gear manufacturing, is currently developing a new smartphone, that would suit the lifestyle of mobile gamers. Although company representatives seem reluctant to share in-depth details about the project, Razer’s CEO has previously confirmed company’s ambitions to expand to the mobile gaming segment.
Razer’s share sale will give the company the green light to developing new gadgets. The company is said to seek a valuation range between $3 and $5 billion. However, the final decision will be determined by the market conditions at the time of the deal.
According to industry analysts, Razer has decided to seek October HK IPO with the aim of accelerating its expansion in China. The Chinese gaming market is currently developing with a tremendous speed. As for Razer’s IPO, it is considered one of the biggest tech debuts on the Asian market in years.
Over the years, Razer has been steadily growing to become a leading manufacturer of gaming accessories on a global scale. Back in 2016, it acquired THX Ltd. A few months ago Nextbit became a part of Razer’s family. These acquisitions were intended to help Razer unleash new gaming products, including a mobile device.
As far as company’s financial performance in 2016 is concerned, Razer’s revenue saw a $72,4 million increase YOY. In 2015, Razer generated revenue of $319.7 million.
Razer’s main source of revenue is the gaming hardware, but it is also developing a virtual currency – zGold. As reported earlier, Razer acquired a minority stake in MOL AccessPortal and MOL became the master distributor of zGold. Consequently, the name of the virtual currency was changed to zGold-MOLPoints. In addition, the company sponsors a great number of e-sports teams and organizations.
Razer has previously considered a US IPO, but it was valued at $1.5 billion. Company representatives declined to comment on Razer’s plans for the October Hong Kong IPO.