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IPO Watch: Razer Plans IPO At Up To $5 Bln Valuation

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Razer Inc. plans a Hong Kong initial public offering that could value the gaming gear maker at as much as $5 billion, reports said citing people familiar with the matter. The IPO, planned towards the end of October, is said to help fund development of its own mobile phone.

As per the reports, the company, whose backers include Intel Corp. and a unit of Temasek Holdings Pte, is considering a valuation range of between $3 billion to $5 billion. The final decision on the size of IPO and its overall value will depend on market conditions at the time of the deal.

Razer was co-founded in 2005 by Min-Liang Tan and Robert Krakoff with a gaming mouse as its initial product. Its latest products include laptops worth almost $4,000. The company's main source of revenue is gaming hardware, but it is also developing a virtual currency called zGold.

In 2016, it bought assets from a company previously known as THX Ltd, which was founded by George Lucas. This year, it acquired certain assets and intellectual property from mobile phone manufacturer Nextbit Systems.

The company sells its products online and in chains like Best Buy across the U.S. Razer generated $392.1 million revenues in 2016, higher than the previous year, while losses widened to $59.6 million.

Razer's share sale is expected to help it develop new gadgets. The company reportedly said the Hong Kong IPO will help it accelerate its expansion into China's $25 billion gaming market.

Razer hired Credit Suisse and UBS as sponsors of the IPO, with Evercore also acting as financial adviser.

by RTT Staff Writer

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