SINGAPORE - 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 (50 Singapore cents) to HK$4.00 a share. The price will be fixed on Nov 6. Plans are for trading to start on Nov 13.
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. The expected date for the big reveal is Nov 2 (Singapore time), according to Razer's website.
The public offering 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, whose early investors include Intel, Hong Kong's richest man Li Ka Shing, as well as 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 on Tuesday.
Of this, 25 per cent will be used for more developments in the gaming and 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 spent on sales and marketing initiatives for new products such as zGold, Razer's virtual 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 like high-precision mice and customisable keyboards in 76 countries.
The full prospectus is expected to be out on Wednesday (Nov 1).