Business

Razer shares surge by 42% in HK market debut

HONG KONG: Shares in Razer Inc, backed by Intel Corp and Hong Kong billionaire Li Ka-shing, surged as much as 42 per cent in its Hong Kong stock market debut yesterday, amid growing retail demand for new technology stocks.

Razer, which was founded in 2005 by Tan Min-Liang and Robert Krakoff, said that last week it raised about HK$3.9 billion (S$681 million), excluding underwriting and other expenses, after pricing the IPO of 1.063 billion primary shares near top of the HK$2.93-HK$4.00 range.

The Razer stock opened at around HK$5 yesterday and extended its gains to as much as HK$5.49 in early trade, posting a gain of 41.5 per cent compared to its IPO price of HK$3.88 per share and giving it a market value of HK$48.9 billion.

At one stage, the stock was trading at HK$4.74.

The firm's strong debut is the latest in a string of stellar listings by technology-based companies in Hong Kong, with strong interest from retail investors.

Last week, Tencent's e-book unit China Literature Ltd saw its shares surge more than 80 per cent on debut, as Hong Kong investors embrace a rush of tech listings.

Shares in ZhongAn Online Property & Casualty Insurance Co. jumped 18 per cent in its debut in September, after the company raised $1.5 billion in Asia's biggest financial technology IPO.

The excitement surrounding such offerings bodes well for expected listings from other fintech giants in Hong Kong, including Alibaba affiliate Ant Financial and peer-to-peer lending and wealth management platform Lufax. - REUTERS

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