- Second major fundraiser of the year for Sea
- Products allocated to strategic investments, acquisitions
- Sea Expands Into New Markets To Deploy Singapore Digital Bank
- Sea shares almost quintupled in 2020
HONG KONG, Sept. 9 (Reuters) – E-commerce and gaming company Sea Ltd (SE.N) is seeking to raise $ 6.3 billion in a sale of stocks and convertible bonds in the part of the largest capital round ever in Southeast Asia, harnessing growing investor interest in the region.
This is the second major fundraiser in less than a year for the $ 185 billion company, which seeks to accelerate its global expansion by testing possible new markets, and the latest in a host of deals. in Southeast Asia.
Sea, known for its Shopee e-commerce platform, is looking to sell 11 million U.S. certificates of deposit with the option of offering an additional 1.65 million under a so-called “greenshoe” option, said the Singapore-based company Thursday in a regulatory case.
He is also raising $ 2.5 billion in a convertible bond with a $ 375 million greenshoe. At the Sea’s closing price of $ 343.8 in New York on Wednesday, the sale of shares could bring in as much as $ 3.8 billion.
The combined deal would be the largest capital raise ever for a Southeast Asian company, according to data from Refinitiv.
Sea “isn’t really burning money,” said Sumeet Singh, director of Aequitas Research, adding that the latest round “seems opportunistic rather than something the company needs.”
Given that Sea had nearly $ 7 billion in cash on its balance sheet at the end of the first half, the deal will bring it to nearly $ 13 billion, Singh, who reports on Smartkarma, told Reuters.
Sea, the largest of all Southeast Asian companies in terms of market value, plans to use the proceeds for general corporate purposes, including strategic investments and acquisitions.
Sea’s Shopee plans to expand into Europe and India, Reuters reported. At the end of last year, Sea also obtained a full digital banking license in Singapore.
ASIA BY THE SEA OFFERS
Southeast Asian fintech and e-commerce companies have raised significant capital as global investors bet on emerging post-pandemic tech games in the region.
Sea Shares rose 72.72% this year, after surging nearly five times in 2020 amid strong demand as COVID-19 restrictions forced people to stay indoors.
So far in 2021, companies have raised a total of $ 15.67 billion in equity capital markets in Southeast Asia – the most in three years, Refinitiv data shows – up from $ 11.8 billion. dollars during the corresponding period in 2020.
Among other deals, Southeast Asia’s largest rideshare and delivery company, Grab, has raised more than $ 4 billion this year as part of its record valuation of nearly $ 40 billion under of a SPAC deal, while sources say Indonesia’s largest tech group Goto is on the verge of closing a pre-IPO. fundraising exercise this year.
Reporting by Scott Murdoch in Hong Kong and Anshuman Daga in Singapore; Editing by Muralikumar Anantharaman and Himani Sarkar
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