Razer logo
Gaming company Razer makes use of a triple-headed snake as its logo. Razer

Razer is reportedly going after a Hong Kong initial public offering, one that could shoot up the company’s worth to as much as US$5 billion (AU$6.44 billion). Word has it that the gaming enthusiast intends to develop its own brand of smartphones.

Razer is a reputable name in the gaming and eSports scene. The California-based hardware maker is reportedly working on a smart device that will specifically target the same community of gamers. The company is aiming for an IPO valuation between US$3 billion (AU$3.87 billion) to US$5 billion (AU$6.44 billion), which is enough to jumpstart its smartphone business.

Razer wants to start the process in Hong Kong in October before making its way to China, where the gaming industry is worth an astounding US$25 billion (AU$32.22 million). The gaming gear manufacturer currently makes its presence felt in the world’s most populous country with the help of e-commerce goliaths Alibaba and JD.com. Razer CEO and creative director Min-Liang Tan has recently mentioned that the company has sold US$1 billion (AU$1.29 billion) worth of products worldwide since 2014.

According to Bloomberg, the DeathAdder maker’s IPO would be one of the biggest debuts by a tech company in the Asian financial centre in years. Back in October 2014, Razer was reportedly worth US$1.5 billion (AU$1.93 billion). According to Reuters, the company amassed US$319.7 million (AU$412 million) in revenue in 2015 and had earnings of US$392.1 million (AU$505.3 million) last year.

The global gaming industry is projected to balloon from this year’s estimated US$117 billion (AU$150.78 billion) to roughly US$146 billion (AU$188.15 billion) in 2020, which is an estimated 25 percent increase. What’s more, the Asia Pacific market is expected to grow by up to 39 percent and make about US$65.3 billion (AU$84.15 billion) over the same timeframe, with a projected 40 percent bump in software expansion and 22 percent hardware growth.

Razer has been making a lot moves lately. Back in May, the company aligned with the 3 Group – a telco brand under multinational tech conglomerate CK Hutchison Holdings – as part of a global strategic partnership, which is Razer’s first with a mobile network operator. The alliance intends to attract the gaming world with mobile devices, tariff plans and Razer’s proprietary virtual currency, zGold.

Razer’s acquisition of Nextbit Systems – the start-up that developed the pioneering cloud-based Robin Android smartphone – back in January was the company’s first venture into the smartphone business. Razer’s most recent release is the updated Blade Stealth gaming laptop, which was made available last month.


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