Finance

Sea looking to raise $6.3 bln in SE Asia’s biggest fundraising

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A lanyard exhibiting logos of Southeast Asian e-commerce and gaming group Sea Ltd is pictured at its workplace in Singapore, March 5, 2021. REUTERS/Edgar Su/File Photograph

  • 12 months’s second main capital elevating for Sea
  • Proceeds earmarked for strategic funding, acquisitions
  • Sea expands in new markets, to roll out Singapore digital financial institution
  • Virtually five-fold surge in Sea shares in 2020

HONG KONG, Sept 9 (Reuters) – E-commerce and gaming firm Sea Ltd is seeking to increase $6.3 billion in a share and convertible bond sale in Southeast Asia’s largest ever capital elevating, tapping rising investor curiosity within the area.

That is the second main fund elevating in lower than a yr for the $185 billion firm, which is in search of to by testing out attainable new markets, and the newest amongst a slew of offers in Southeast Asia.

Sea, recognized for its Shopee e-commerce platform, is seeking to promote 11 million American Depository Receipts with the choice to supply 1.65 million extra as a part of a so referred to as greenshoe possibility, the Singapore-headquartered firm mentioned in a regulatory submitting on Thursday.

It’s also elevating $2.5 billion in a convertible bond that has a $375 million greenshoe connected. At Sea’s closing inventory value of $343.8 in New York on Wednesday, the share sale may increase as much as $3.8 billion.

The mixed deal could be the most important ever capital elevating for a Southeast Asian firm, based on Refinitiv knowledge.

Sea is “probably not burning by way of money”, Aequitas Analysis director Sumeet Singh mentioned, including the newest elevating “seems opportunistic somewhat than one thing that the corporate wants.”

Given Sea had practically $7 billion of money on its stability sheet on the finish of first half, this deal will bolster that to almost $13 billion, Singh, who publishes on Smartkarma, advised Reuters.

Sea, the largest amongst all Southeast Asian firms by market worth, plans to make use of the proceeds for basic company functions, together with strategic investments and acquisitions.

Sea’s Shopee is planning to develop into Europe and India, Reuters has reported. Late final yr, Sea additionally secured a full

SE ASIA DEALS

Fintech and e-commerce firms in Southeast Asia have been elevating as world buyers guess on post-pandemic expertise performs rising within the area.

Sea Shares have risen 72.72% this yr, after an nearly five-fold bounce in 2020 amid sturdy demand as COVID-19-related restrictions compelled individuals indoors.

To this point in 2021, firms have raised a complete of $15.67 billion in fairness capital markets in Southeast Asia – essentially the most in three years, Refinitiv knowledge reveals – versus $11.8 billion over the corresponding interval in 2020.

Amongst different offers, Southeast Asia’s greatest ride-hailing and supply agency this yr as a part of its practically $40 billion report valuation in a SPAC deal, whereas sources say Indonesia’s greatest tech group

Reporting by Scott Murdoch in Hong Kong and Anshuman Daga in Singapore; Modifying by Muralikumar Anantharaman and Himani Sarkar

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