Sept. 9 (Reuters) – Singapore-based games and e-commerce company Sea Ltd (SE.N) raised around $ 6 billion in a sale of stocks and convertible bonds, making it the largest fundraising from South East Asia.
The company valued 11 million American Depository Receipts at $ 318 each, as well as $ 2.5 billion in convertible bonds.
Sea operates the popular Shopee e-commerce site, which has been expanded to Asia and Latin America, and the company is launching in Europe by opening in Poland, Reuters reported.
Shares of Sea, Southeast Asia’s most valuable listed company by market cap, rose 1.6% on Friday in pre-market trading. The stock is 62% higher for the year.
The deal was the largest fundraiser in Southeast Asia, according to data from Refinitiv.
“With the huge investor interest in tech stocks and with interest rates so low, it’s always good to strengthen your finances,” said a source familiar with the deal.
Sea shares jumped nearly five times last year amid strong demand as pandemic restrictions kept people indoors.
For the quarter ended June, Sea’s adjusted profit before interest, taxes, depreciation and amortization from its digital entertainment business reached $ 741 million, up 71% year-over-year.
If the over-allotment is exercised on the sale of shares and the issuance of convertible bonds, the amount raised would reach $ 6.9 billion, according to regulatory documents from Sea, which would be the largest raised by a listed Asian company. in the USA.
It was the company’s second sale in less than a year after the company raised $ 2.6 billion in December.
At $ 318, the price set was a 1.4% discount from its negotiation price before the deal kicked off in New York on Wednesday.
In its documents, Sea said it plans to use the cash for strategic investments and potential acquisitions.
But an analyst questioned the need to raise funds given the company had $ 7 billion on its balance sheet at the end of June.
“The reason for this fundraising could be an early indication that the games industry is no longer able to finance the growth of e-commerce and fintech,” said Oshadhi Kumarasiri, analyst at Lightstream Research.
Reporting by Scott Murdoch in Hong Kong and Kanishka Singh and Aakriti Bhalla in Bengaluru; Additional reporting by Anshuman Daga in Singapore; Editing by Shounak Dasgupta and Edmund Blair
Our Standards: Thomson Reuters Trust Principles.