Corsair Gaming, a hardware and accessory company, went public Wednesday under the ticker symbol CRSR and is looking to raise $238 million. On launch, its shares were priced at $15 and its shares were down about 4% in mid-afternoon trading.
Corsair (CRSR) sells gaming hardware and accessories, including mice, headsets, keyboards and computer parts that people can use to build their own custom PCs. It competes against such companies as Logitech (LOGI) and Razer (RAZFF), which have are already public. The company has grown its revenue to $1.3 billion over the last 12 months ending in June.
Because of its emphasis on computer parts, a lot of Corsair’s business is geared toward the PC gamer segment, which means that the company’s growth depends partially on whether more console gamers and non-gamers convert to PCs.
It looks as if more people have indeed been turning to building their own gaming PCs during the Covid-19 pandemic, including Superman actor Henry Cavill, whose video of himself assembling one went viral. Games that are exclusive to the PC platform, such as “League of Legends,” have also picked up steam, and Corsair is a sponsor of League’s sporting events.
The pandemic has been a mixed bag for Corsair, as demand has far outstripped supply. The company’s revenue increased over the first half of this year, bringing in a $23.8 million profit after two years of net losses. But Covid-19 is listed as a risk factor in the company’s regulatory filing to go public, as it has slowed down the company’s supply chain.
“With people at home, they’re able to spend a little bit more time on the internet, sharing content with friends,” CEO Andy Paul told CNN Business. “That’s been really helpful for consumer demand. We’ve still got a huge untapped market in front of us, because the vast number of gamers have yet to buy specialized gear.”
Corsair is the latest in a string of tech companies to go public, including popular gaming development platform Unity trading under the ticker symbol “U,” and cloud data storage company Snowflake, which became the biggest software IPO ever, with shares more than doubling on their first day of trading.
“We’re already waiting for Wall Street investors to understand gaming and streaming properly. Some of these new industries… are tough for investors to understand,” said Paul. “Perhaps people saw gamers as sort of a troubled teenager playing games in the basement. It’s a real sport… it’s become mainstream and we understand this is a great time to finally become a public company.”
Will Hershey, CEO of investment advisory firm Roundhill Investments, estimated that Corsair has a total value of over $2 billion.
“This tremendous growth highlights the surge in gaming activity, further illustrated by record quarters for other gaming peripheral manufacturers including Turtle Beach and Logitech,” said Hershey He added that Razer has expanded into software and fintech, which “may be in the cards for Corsair longer-term as well.”