Southeast Asian e-commerce and gaming company, Sea, is looking out to raise $6.3 billion in a share and convertible bond sale, in what could be Southeast Asia’s biggest capital raising.
The Singapore-based company in its regulatory filing on Thursday said it plans to sell 11 million American Depository Receipts (ADRs), with the option to offer 1.65 million more as part of a “greenshoe option”. In addition, it is raising $2.5 billion in a convertible bond that has a $375 million greenshoe attached.
The new fundraising is coming in less than a year after the giant company, valued at $185 billion, had its first major capital raising. In December last year, Sea raised $2.57 billion in a discounted share sale at $195 a share. According to a statement, Sea priced the sale of 13.2 million American Depositary Shares at $195 each, increasing the size from 11 million because of strong demand. The company also finalized a $1 billion convertible bond sale in May 2020.
In the past few months, fintech and e-commerce companies in Southeast Asia have been securing impressive amounts of funds as global investors have taken a keen interest in the post-pandemic technology emerging in the region. Data from Refinitiv showed that companies have raised a total of $15.67 billion in equity capital markets in Southeast Asia in 2021, impressively higher than the $11.8 billion raised in 2020.
With the new funds, Sea, Southeast Asia’s largest firm by market capitalization, plans to scale up its global expansion by testing out possible new markets. More specifically, Sea’s e-commerce platform Shopee plans to expand into Europe and India. Sea added that the new capital will be used for general corporate purposes, including strategic investments and acquisitions.
Sea’s stock price closed at $343.8 in New York on Wednesday, but its share sale could raise to $3.8billion. Shares of the company have risen 72.72 percent this year, after an almost five-fold jump in 2020, thanks to an increase in demand brought about by the COVID-19 pandemic which restricted movement and forced people to stay at home.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
