Gaming giant Razer considers US listing

Tan Min Liang, Co-Founder, CEO and Executive Director of Razer, at a press conference on the proposed listing of Razer at the JW Marriott Hotel Hong Kong in Admiralty.

Dickson Lee | South China Morning Mail | Getty Images

Gaming hardware company Razer is considering a secondary listing in the US, CEO Min-Liang Tan told CNBC on Thursday.

Razer, which makes laptops, PC peripherals, and other products for gamers, is currently listed in Hong Kong. But the company was founded in the United States, which is where it is headquartered, and makes the majority of its sales there.

“I was definitely considering” a second listing in the US, Tan said in an interview. Gamers are asking “every day” why Razer isn’t already trading on a US exchange, he added.

Tan said the company was “in the midst of internal discussions” about whether to go public in the US. “We don’t have anything to announce at this point, but we’re looking at this.”

Razer is one of many gaming companies that thrived during the coronavirus pandemic as lockdown restrictions spurred activity on it.

The company saw first-half sales jump 68% to $ 752 million this year. Razer also posted net income of $ 31.3 million for the first six months of 2021 and bounced back from a net loss of $ 17.7 million in the same period in 2020.

“Most of the business is actually outside of the US, followed by Europe and then Asia,” which is “mostly” driven by sales in China, Tan told CNBC. “I would say that makeup is still 40-50% in the US”

While Razer is best known for its hardware business, the company also invests heavily in software and services.

The service department of Razer includes the virtual Razer Gold credits for gamers and the digital payment unit Razer Fintech. The company recently discontinued Razer Pay, its electronic wallet, to focus on processing payments for merchants.

Razer had hoped to expand into the consumer market, but scaled back those ambitions after failing to obtain a license in Singapore, its Asian headquarters.

“We’re really focused now on scaling our B2B side of things,” said Tan, referring to business-to-business transactions. “Right now, our focus is really on enabling B2B for the fintech business and B2C [business-to-consumer] these are the virtual credits for the Razer Gold business. “

Explore crypto

Razer’s online credits were previously described as “virtual currency” for gamers. However, Tan says the company “spent a lot of time labeling Razer Gold a virtual loan” because of the need to comply with regulations.

When asked if Razer Gold could become a cryptocurrency like Bitcoin, Tan said Razer was “interested” in the world of cryptocurrencies but had no immediate plans to move into it.

“That strange thing [Razer Gold] “We actually kept it in a closed loop,” Tan said. “We could literally open it on a blockchain tomorrow [and] it could literally be one of the largest virtual currencies in the world. “

“I think it’s definitely one of those areas where we see huge potential,” he added. “But we really take the time to really understand the different cryptocurrencies out there, the blockchain technologies out there, before we do anything.”

Razer was founded in 2005 in California by Tan, a Singaporean entrepreneur and former lawyer. The company is now valued at over $ 2 billion in the Hong Kong market. Razer’s stock price is down about 27% since the start of the year, despite rising over 13% over the past year.

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