“The Knights are now very strong, and the new king celebrates the victory.” In early November, since sponsoring the team EDG to win the LPL (League of Legends) Global Finals, Razer officially released this celebratory microblog on Weibo. This hard-earned victory thrilled fans in the gaming community, from brands up to and beyond the circle.
However, just a month later, Razer, once known as the “No. 1 gaming company”, announced on the Hong Kong Stock Exchange that its Chairman, Executive Director and Chief Executive Officer, Lim Kaling, a non-executive director, and CVC had made an offer. Mr. Lim proposed to privatize the company through an agreement arrangement. The cancellation price is HK$2.82 per share. This price represents a premium of approximately 5.6% to yesterday’s closing price of HK$2.67. Compared to the past month, Razer’s share price has risen sharply.
However, it is still short of the HK$3.88 offering price at the time of the IPO, and the total market capitalization is well below the peak of nearly HK$45 billion on the second day of the IPO in 2017. Affected by the news of delisting, Razer’s Hong Kong shares fell more than 10% in early trading on the 2nd, touching a low of HK$2.39.
From a high of HK$5.12 per share at the beginning of the listing to the current HK$2.39 per share, Razer shares have been in the doldrums since the highs for nearly five years, continuing to fall below HK$2. As of now, Razer has only used its 2020 and 2021 earnings reports to push its share price up to HK$2. Currently, the scale of China’s E-Sports industry continues to expand. According to Ariadne, the impact of the epidemic has significantly increased users’ online entertainment time, further driving the overall growth rate of the E-Sports market. The E-Sports market size is expected to exceed 180 billion yuan in 2021. Razer, as a peripheral magnet manufacturer that has been accompanying the development of the E-Sports industry, has not kept pace with the industry’s development. Now, after the withdrawal of Razer, there is still no final decision.
Post time: Aug-19-2021
