- Video game hardware company Razer Inc. made its stock market debut on Monday.
- Shares are doing well, giving the company a market value of $6.3 billion.
HONG KONG — Shares in Razer Inc., backed by Intel Corp and Hong Kong billionaire Li Ka-shing, surged as much as 42% in their Hong Kong stock market debut on Monday, amid growing retail demand for new technology stocks.
The Razer stock opened at around$0.64 (HK$5) on Monday and extended its gains to as much as $0.70 (HK$5.49) in early trade, posting a gain of 41.5 percent compared to its IPO price of $0.50 (HK$3.88) per share and giving it a market value of $6.3 billion (HK$48.9 billion).
By the afternoon, the stock was trading at $0.61 (HK$4.74).
The company’s strong debut is the latest in a string of stellar listings by technology-based companies in Hong Kong, with strong interest from retail investors.
Last week, Tencent’s e-book unit China Literature Ltd saw its shares surge more than 80 percent in their debut, as Hong Kong investors embrace a rush of tech listings.
Shares in ZhongAn Online Property & Casualty Insurance Co jumped 18% in their debut in September, after the company raised $1.5 billion in Asia’s biggest-ever financial technology IPO.
The excitement surrounding such offerings bodes well for expected listings from other fintech giants in Hong Kong, including Alibaba affiliate Ant Financial and peer-to-peer lending and wealth management platform Lufax.
Underscoring the demand for technology issues, the retail portion of the Razer IPO gathered demand that was 291.24 times the number of 106.36 million shares on offer, the company said on Friday.
The company, which is headquartered in Singapore and the United States, was founded in 2005 by Min-Liang Tan and Robert Krakoff and has grown from producing a gaming mouse as its initial product to manufacturing laptops worth almost $4,000.
It plans to use the IPO proceeds to develop new verticals in the gaming and digital entertainment industry, including mobile devices, audio visual technology and live-streaming, as well as to fund acquisitions as it expands its ecosystem.
($1 = 7.8009 Hong Kong dollars)
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