UPDATE: Corsair Gaming Raises Over $238m In IPO With Market Cap Of $1.5B+
? IPO
US-based gaming hardware manufacturer Corsair Gaming (also known as Corsair Components) raised gross proceeds of over $238m+ with trading started on September 23, 2020
Corsair offered 7.5 million shares and 6.5 million shares were offered by the selling shareholders (app. 15.2% of total outstanding shares) of common stock at a $17.00 price per share
Corsair’s share close price on September 25 accounted for $17.25 (+1.5% increase) with the market cap of around $1.58B trading at 1.5x EV/Revenue (LTM as of June 30, 2020)
Corsair filed for an initial public offering on the NASDAQ Stock Exchange under the ticker “CRSR” on August 21, 2020
Prior to IPO, Corsair announced its plans to use net proceeds to repay outstanding indebtedness (Net Debt of $382m as of June 30,2020)
? Financial Performance
During that first half of the year, the company earned $23.8m in net income on $688.9m of net revenue, up 150% and 41.7% YOY respectively
The firm’s last year net revenue and net loss stood at $1.1B and $8.4m respectively, with the company displaying a revenue growth rate of 17.0%
? Recent Acquisitions
In December 2019, Corsair acquired the creator of high-performance gaming controllers SCUF Gaming
In July 2019, the company acquired Florida-based ORIGIN PC Corporation, manufacturer of custom high-end gaming desktops and laptops
In July 2018, Corsair acquired certain assets and technology from Germany-based Elgato Systems, a provider of hardware and software for streamers
? Product
Corsair Gaming is a hardware manufacturer, producing premium quality gear for gamers and streamers. The company operates within two segments:
Gamer and creator peripherals (27% of revenue), including gaming accessories (keyboards, mice, headsets, controllers, streaming devices, etc.)
Gaming components and systems (73% of revenue), including customized PCs, power supply units, cooling solutions, computer cases, and DRAM modules
Corsair also works on software solutions to improve the compatibility and performance of its products
Initially, Corsair focused on RAM for PCs, but then it expanded into other PC components, peripherals, and accessories. After acquiring Elgato in 2018, the company started producing streaming hardware for content creators
Corsair operates production facilities in Taiwan, the US, and the UK, as well as uses factories operated by third parties located in China, Taiwan, and countries in Southeast Asia. The company has shipped over 190m gaming products since 1998, with over 85m gear shipments in the past five years
The company’s primary end-markets are the US, Europe, and Middle East
Apart from all that, Corsair supports esports teams and aspiring streamers:
The company partners with streamers through its Corsair Streamer Program. Joining this program, streamers can get free Corsair hardware, merchandise, and discounts
Corsair sponsors such esports team as Berlin International Gaming, Envy Gaming, FC Schalke 04, ROX Gaming, Team Secret, and Team Vitality
SOURCES: SEC FILING
