Report: Razer aims for an IPO valued at up to $5 billion
One of the biggest gaming gear manufacturers, and a prominent esports sponsor, could be set for a massive valuation on the stock market.
Razer filed for an initial public offering with the Hong Kong stock exchange that could value the company at up to $5 billion, sources familiar with the story told Bloomberg.
Reportedly, Razer aims to develop its own mobile phone tailored for its target group of hardcore gamers. The company is seeking a valuation between $3 billion to $5 billion, and aims to list around October this year.
If it works out, Razer’s IPO would be "one of the largest tech debuts in the Asian financial center in years," Bloomberg reporters Lulu Yilun Chen and Crystal Tse state. Razer had already expanded into the massive Chinese gaming market via partnerships with commerce giants JD and Alibaba, both of which are involved in esports themselves. Currently, China makes up for about 13 percent of Razer's business.
The San-Francisco based company had set foot in Hong Kong last month already, when it unveiled an esports concept store The outlet is jointly run with mobile telecommunications company Three Group. The partnership was Razer's first with a telecommunication network operator.
"This is a great time for gamers, as support of esports in Hong Kong is growing tremendously, especially from the Hong Kong government," Razer co-founder and chief executive Tan Min-liang said at the launch.
In February this year, Hong Kong Financial Secretary Paul Chan Mo-po described esports "as a new sector with economic development potential, which can help boost the local gaming industry, and information and technology development such as the application of virtual reality technology."
Razer is a heavily engaged in esports globally, as well. To date, the company sponsors twelve teams, including SK Gaming, SK Telecom T1, and Team Liquid. In total, "Team Razer" is home to more than 300 esports players all over the world.