Gaming tech firm Razer is seeking to raise up to US$545 million (S$743 million) through an initial public offering (IPO) in Hong Kong that could value the company at up to US$4.55 billion.
Razer, which is on a roadshow until Nov 6, has indicated an IPO price range of between HK$2.93 to HK$4 a share. The price will be fixed on Nov 6 with plans for trading to start on Nov 13. The IPO comprises 1.06 billion shares or 12 per cent of Razer's share capital. There will also be an over-allotment option for 160 million shares.
Razer's market debut would coincide with the launch of its first mobile phone, which it said would be released first in the United States and Europe. Nov 2 (Singapore time) is the expected date for the big reveal, according to Razer's website.
Razer, whose early investors include Intel, Hong Kong's richest man Li Ka Shing and Singapore venture capitalist Lee Hsien Yang, has also raised US$153 million from five cornerstone investors, including Singapore sovereign wealth fund GIC (US$20 million). The others are Indonesia's billionaire brothers Robert Budi Hartono and Michael Bambang Hartono (US$33 million), Singhaiyi Group managing director Celine Tang (US$50 million), Rio casino owner Loi Keong Kuong (US$30 million) and Chinese real estate developer Kingkey (US$20 million).
The IPO would raise net proceeds of about HK$3.5 billion, based on a mid-range offer price and assuming that the over-allotment option is not exercised, Razer said yesterday.
Of this, 25 per cent will be used to expand business in the gaming and digital entertainment industry, including mobile devices. Another 25 per cent will be set aside for acquisitions, 20 per cent for expansion of research and development, and 20 per cent earmarked for sales and marketing initiatives for new products such as zGold, Razer's credits service launched in January.
Razer, founded by Singaporean Tan Min-Liang in 2005, describes itself as a lifestyle brand for gamers. It is based in both Singapore and California, and sells premium gaming peripherals such as high-precision mice and customisable keyboards in 76 countries.
$612mThe IPO would raise net proceeds of about HK$3.5 billion (S$612 million), based on a mid-range offer price and assuming the over-allotment option is not exercised.
The full prospectus is expected to be out today.