Razer Inc. is shooting for a Hong Kong initial public offering that could value the gaming gear maker at as much as $5 billion and help fund development of its own mobile phone, people familiar with the matter said.
The company — which makes accessories from mice to laptops that bear a green tri-headed snake — is developing a mobile device tailored for its consumer base of hardcore gamers, according to the people. Razer’s share sale, which will give it ample ammunition to develop new gadgets, will seek to value the company at $3 billion to $5 billion, the people said, asking not to be identified talking about internal plans. It aims to list around October, the people said.
Razer, which sells products online and in chains like Best Buy across the U.S., has said it wants to use Hong Kong as a beachhead from which to accelerate its expansion into China’s $25 billion gaming market. The company now sells its product there via e-commerce giants JD.com Inc. and Alibaba Group Holding Ltd., co-founder Tan Min-Liang said in an interview in June. It’s sold $1 billion worth of product globally in the past three years, Tan added.
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