Hong Kong gaming IPO is less than Razer sharp

Hong Kong

HONG Kong's latest gaming initial public offering (IPO) is not Razer sharp. The US-Singaporean firm, which makes gaming keyboards and mice, is eyeing a valuation of up to US$5 billion in a listing later this year, Reuters reported on Wednesday citing a source. While the broader industry in which this company operates is hot, the financial reality of Razer is underwhelming.

Razer's motto is "For Gamers. By Gamers.". It boasts a loyal customer base of hardcore players - a niche that is expected to spend US$3.3 billion globally on peripherals by 2020, according to the company's prospectus. Razer already dominates the market for gaming mice in China and Europe, these are emblazoned with the trademark logo of a neon green three-headed snake bearing names like DeathAdder and Lancehead. Existing investors include chipmaker Intel and Hong Kong tycoon Li Ka-shing.