Razer yields a mere 18pc return at debutBusiness | Janice Huang Nov 14, 2017
It opened at HK$5.12 per share, 32 percent higher than its initial public offering price of HK$3.88. But it failed to maintain the momentum and eventually closed at HK$4.58, 18 percent higher than the IPO price. Investors could make a paper gain of HK$700 for every board lot of 1,000 shares.
Two transactions, worth a combined HK$69 million, were reportedly made before trading in its shares started yesterday.
Razer chief executive and co-founder Tan Min-liang said the firm hopes to cooperate with AAC Technologies Holdings (2018), but he declined to provide details.
Razer intends to focus on the mainland market as its products sold well at JD.com and Tmall during the Single's Day sales last Friday, the largest shopping event in the country and across the world.
Its new mobile phone for gamers will be available in North America and Europe starting this Friday, and it will be launched in Asia later, Tan said.
Meanwhile, electronic component maker Vertical International Holdings (8375) staged a strong debut yesterday as its share price closed at 58 HK cents, 93 percent higher than its IPO price of 30 HK cents, or a paper gain of HK$2,800 for a board lot of 10,000 shares.
Electronics manufacturing services provider Trio Industrial Electronics Group started book building yesterday. It plans to issue 250 million shares and price them between 52 HK cents and 72 HK cents per share.
It plans to raise up to HK$180 million from the offering. Its shares will start trading on November 23.
Trio Industrial plans to use about 75 percent of the net IPO proceeds to further raise production efficiency and expand production.
It also plans to use about 10 percent of the IPO proceeds to set up offices in Dublin and Paris since Europe is the firm's principal market, which accounts for 70 percent of total sales.
Deputy chairman and chief financial officer Thomson Lai Yiu-wah said that while sales in the mainland and in Hong Kong only account for a small share of total sales, the firm will also seek opportunities in the region.