Listing frenzy continues: Li Ka-shing-backed Razer prices IPO near top of range; Yixin way oversubscribed
Share offerings both way oversubscribed, following on from China Literature which this week became HK’s most-lucrative debut in a decade
Gaming device maker Razer, which is backed by Intel and Hong Kong’s wealthiest man Li Ka-shing, has priced its initial public offering (IPO) near the top of the price range at HK$3.88, after its public offering tranche was 290 times oversubscribed, making it one of this year’s most popular IPOs.
The global offering price has put the IPO fund-raising amount at HK$4.12 billion (US$528 million), the fourth-largest tech listing this year, after ZhongAn Online Property & Casualty Insurance, China Literature, and Yixin Group, in all of which Tencent Holdings has a stake. 1.06 billion Razer shares will be offered for sale.
Razer’s IPO price gave it a market cap of approximately HK$34.4 billion. The company run by Tan Min-Liang, its co-founder, CEO and executive director, has received retail investor demand of 31 billion shares, 291 times the number of shares it offered originally to Hong Kong’s public, the company said on Friday.
About 220,000 retail investors subscribed for the new shares, with the locked-in investor capital reaching HK$124 billion, making the offering one of the most sought-after this year.
Due to the oversubscription, underwriters increased the public offering tranche from 10 per cent to 50 per cent, or 531.8 million shares.
Net proceeds from the IPO, with shares set to debut the Hong Kong stock exchange on Monday are expected to be HK$3.9 billion.
Razer’s shares, meanwhile, have traded more than 15 per cent above their IPO price in the so-called grey market, when new securities are bought and sold before official trading begins.