Razer to Go Private After Being Valued at 3.17 Billion USD

Razer, the popular gaming hardware manufacturer, is all geared up to go private again. This move comes after most of the company's shareholders gave their nod.

As reported by Reuters, Razer is now proactively looking forward to buying all the remaining shares and going private. Post this, founder and chairman Min-Liang Ti and non-executive director Kaling Lim will take the gaming accessories company private. Together, they own about 57% of the company.

Razer, listed in Hong Kong, is now valued at $24.7 billion HKD, which is about 3.17 billion USD. For the remaining shares, the company is offering a price of $2.82 HKD (that is, $0.36 USD) per share.

This offering price of $0.36 USD is a 44% premium over the closing price finalized on October 28, 2021. Post this, Razer halted trading owing to some deal discussions. The purchase price is also 5.6% more than the market closing price on Wednesday. Back in 2017, Razer had gone public with a strong debut of $3.88 HKD per stock due to the high demand for technology stocks at that time.

For the buyout proposal, Credit Suisse will be the financial advisor and Razer's board will be appointing an adviser to look into the proposal.

As far as the company's performance is concerned, it recorded a healthy 33.3% year-on-year revenue growth for 2021. Meanwhile, the company's revenue hit $1.6 billion USD, which is more than the last year's revenue.

However, Razer has warned that the ongoing geopolitical tensions might give rise to some “uncertainties and challenges”. The COVID-19 pandemic might also affect the company's performance in the near future.

Opened in 2005, Razer extended its business to gaming peripherals and hardware. It has its headquarters in the US and Singapore. During the early 2021 lockdown, the company experienced massive profits. In the first half of 2021, Razer had a net profit of $31.3 million, and the US accounted for 42% of it.

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