Bobby Yip | Reuters
Hong Kong Exchanges Chief Executive Charles Li, wearing Razer headphones, poses with Min-Liang Tan, CEO of Razer, during the debut of the company at the Hong Kong Exchanges in Hong Kong on Nov. 13, 2017.
Gaming hardware company Razer saw its stock jump around 40 percent in its debut on the Hong Kong Exchange on Monday.
The company, backed by Hong Kong tycoon Li Ka-shing, pricedits initial public offering at HK$3.88 ($0.50) a share, which said in a filing on Friday. The company said which raised around HK$3.9 billion ($500 million) by the 1.06 billion primary shares offered.
Shares of Razer, which is usually best known for its gaming laptops as well as also computer mice, traded at HK$4.69 ($0.60) by 3:22 p.m. HK/SIN, more than 20 percent above the company’s issue cost.
Prior to its debut, retail demand for Razer’s IPO had exceeded the number of shares offered to the public by 291.24 times, the company said last week.
Singapore wealth fund GIC as well as also Davinia Investment are among Razer’s all 5 cornerstone investors, the company’s prospectus said.
Razer CEO Min-Liang told CNBC earlier This specific year which going public could give the company a war chest to make further investments in research as well as also development, as well as also to develop more fresh products. which released its first smartphone on Nov. 1.
The IPO market in Hong Kong has boomed of late because investors are optimistic over “fresh economy” companies as well as also their potential, said Edmond Hui, the chief executive officer of brokerage Bright Smart Securities.
Hui cited the “outstanding performance” of recently-listed names ZhongAn Online as well as also China Literature as reasons for the positive sentiment over Razer among retail investors.
“Additionally, most of the ‘fresh economy’ companies are backed up by very well-known business giants who have not bad track records,” he added.
Razer’s debut followed China Literature’s public offering on the Hong Kong Exchange last Wednesday, which saw the online literature as well as also e-book platform close up nearly 0 percent on a stellar first day of trade. Online-only insurer ZhongAn Online P&C Insurance, which listed in September in Hong Kong, rose 18 percent on its first day of trade.
The recent slew of high-profile listings came after the number of listings on mainland exchanges exceeded the number of those in Hong Kong, according to EY. Hong Kong had topped the IPO rankings in 2016.