Brief: Razer files for IPO in Hong Kong, net loss widened

Photo credit: Tech in Asia.

The news:

• US- and Singapore-based gaming devices maker Razer has made a preliminary filing to list on the Hong Kong Stock Exchange. Bloomberg reports that it plans to raise US$400 million.
• Its net loss increased from US$20.4 million in 2015 to US$59.7 million last year.
• Revenue rose too; it’s at US$392 million last year compared to US$320 million in 2015.
• It has many prominent backers. Lee Hsien Yang, brother of Singapore’s Prime Minister, has a 0.32 percent stake.

Why it matters:

• Razer is rapidly expanding into many product categories and will need funds to keep its initiatives going.
• It plans to launch a smartphone this year or next year. The phone is developed by Nextbit, which Razer acquired. The company is founded by former members of the Android team.
• Its decision to list in Hong Kong is noteworthy. It tried to list in the US in 2014, but suspended its efforts due to “unfavorable market conditions.”

Source: The Straits Times.