Gaming firm Razer files for IPO, reportedly looking to raise more than $400 million

Razer, a Singaporean-founded gaming tech company headquartered in San Francisco, has filed initial paperwork to go public through an IPO in Hong Kong. The company develops and sells products focused on gaming, such as laptops, tablets and various peripherals like mice, keyboards, and game pads.

In 2014, the company sought an IPO in the US but due to “unfavorable market conditions”, decided to suspend the process in the second quarter of 2015. The size of its IPO remains a secret, though according to a Bloomberg report in April, Razer intended to raise $400 million in a Hong Kong IPO. Razer’s last round of venture capital investment valued the firm at $2 billion.

The filing sheds some light on the company’s financials, which reveal that the company turned a profit of $20.3 million in 2014, but its fortunes turned around in 2015 when it posted a $20.4 million loss. In 2016, it posted increased revenues of $392 million, up from $320 million in 2015, but its losses also widened to $59.7 million. In addition, it spent $52.2 million on research and development last year.

Razer warned that its losses might continue as it tries to fund its continued expansion. The company plans to introduce new products and services in order to diversify its revenue streams. In January of this year Razer acquired Nextbit Systems, a company founded by former employees of Google, that produced the Robin, a cloud-first smartphone. The acquisition brought in key talent and intellectual property, fueling rumors that the company will launch a new mobile device in the near future.

Institutional investors include Redmount Ventures and Foxconn Technology Group. Credit Suisse and UBS are co-sponsoring Razer’s IPO as well.

Source: The Straits Times

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