Gaming firm Razer rises more than 40 per cent in Hong Kong debut

HONG KONG: Shares in Razer Inc (Razer), backed by Intel Corp and Hong Kong billionaire Li Kashing, surged as much as 42 per cent in their Hong Kong stock market debut on Monday, amid growing retail demand for new technology stocks.

Razer said last week it raised about HK$ 3.9 billion ( US$ 500 million), excluding underwriting and other expenses, after pricing the initial public offering (IPO) of 1.063 billion primary shares near top of the HK$2.93 to HK$4.00 range.

The Razer stock opened at around HK$5 on Monday 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 (US$6.3 billion).

By 0203 GMT, the stock was trading at HK$4.74.

The company’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 in their debut, as Hong Kong investors embrace a rush of tech listings.

Shares in ZhongAn Online Property & Casualty Insurance Co jumped 18 per cent in their debut in September, after the company raised US$1.5 billion in Asia’s biggest-ever 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