One of the gaming industry’s biggest accessory firms, Razer Inc, could be set for a huge valuation as it prepares to enter the stock exchange.
Bloomberg recently reported that “Razer Inc. is shooting for a Hong Kong initial public offering that could value the gaming gear maker as high as $5 billion and help fund development of its own mobile phone, people familiar with the matter said.” These are particularly impressive figures for the firm given that they initially expected to raise just $600 million from the move and have seen zero increase in profits since 2014.
The initial move to Hong Kong is part of a wider strategy by the firm in which they will use the state to accelerate their growth into the wider Chinese computing markets. China is currently undergoing a surge in gaming popularity with the industry currently worth $25 billion to the economy.
The share sale from being on the stock market would give the company the ample resources to develop the research and development capabilities necessary to expand into other lucrative markets. The company is reportedly interested in manufacturing it’s own range of mobile phone handsets specifically targeted towards it’s niche but numerous hardcore gaming community.