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Corsair Gaming Has Rocky Start on First Day of Trading

Shares of the gaming hardware designer are sliding.

Corsair Gaming  (CRSR) - Get Corsair Gaming, Inc. Report had a rough debut in its debut as a publicly traded company.

Shares of the Fremont, California-based company, which had priced 14 million shares at $17, were down 8.5% to $15.67.

The company, which designs and sells PC- or console-based gaming and esports hardware for enthusiasts, said in an S-1 filing that as of June 30, it had shipped more than 190 million gaming and streaming products since 1998, with more than 85 million in the past five years. 

Corsair said its net revenue "has grown significantly" since 2017.

For 2017, 2018, 2019 and for the six months ended June 30, 2019 and 2020, net revenue totaled $855.5 million, $937.6 million, $1,097.2 million, $486.2 million and $688.9 million, respectively.

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Corsair is headed by co-founder, president and CEO Andrew Paul, who was previously president of the multichip division at Cypress Semiconductor.

The company said in its filing that "the gaming and streaming gear category is benefiting from the growing popularity of eSports and streaming, which are driving an increase in gaming and streaming participants as well as spend per participant on high-performance gear." 

"We believe our brand name, high-performance gear and market position will allow us to capture a large share of this market growth and we intend to continue to make significant marketing investments in leading eSports teams, athletes, streamers and social media influencers," the filing said.

Since traditional arcade games of the 1970s, Corsair said, "gaming has evolved into the mainstream and taken a central place in the global entertainment landscape."

There were an estimated 2.6 billion gamers worldwide across all devices spending more than $148.8 billion on games in 2019, the filing said, citing Newzoo.