Razer Announces Share Buyback And Will Return To Private Company

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Razer: One of the biggest brands linked to eSports, Razer announced on Thursday (2) that its executives have formed a block to transform the PC and gaming peripheral maker into a private company, going private and repurchasing the shares, which are currently listed on the Hong Kong Stock Exchange for $3.17 billion (BRL 18 billion).

Led by President Min-Liang Tan and director Kaling Lim, the private group already holds about 57% of the shares, according to Reuters. They are offering $0.36 (R$2.03) per share to get the remaining 43%, saying this offer is final. According to the publication, in addition to executives, a private equity firm is willing to invest capital directly in the company, in search of new business opportunities.

Rumors of Razer’s share repurchases were said to be worth $0.51 (R$2.88) per share last month. So, as soon as the consortium announced its intention to go public, the shares plunged 8% in one go. According to consultant David Blennerhassett, from Ballingal Investment Advisors, the proposed price is fair, as it represents a premium of 34.6% over the last closing price.

Razer’s trajectory

Founded in San Francisco, USA, and Singapore in 2005, Razer expanded its business into the gaming laptops and keyboards sector, making its debut on the Hong Kong Stock Exchange in 2017, in an IPO that valued every share in $0.50. However, after a negative result of US$17.7 million (R$100 million) in 2020 due to the impacts of the pandemic, shares fell to half their peak of US$0.43 in February.

Despite this, prospects are once again promising after the company announced record net income of $31.3 million in the first half of 2021.