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S’pore tech giant Sea Ltd to raise S$8.5B to fund global expansion and acquisition plans

Singapore tech giant Sea Limited is looking to raise US$6.3 billion (S$8.5 billion) to drive global expansion and acquisitions.

The parent of Shopee, Garena, and SeaMoney is offering 11 million shares, which is worth about US$3.8 billion as of Wednesday’s market close, Bloomberg reported. It also intends to issue US$2.5 billion of equity-linked debt.

Sea will use the latest capital toward business expansion and other general corporate purposes, including potential strategic investments and acquisitions, the company said in a statement.

The 11 million shares will be the biggest equity sale since Chinese e-commerce operator Pinduoduo raised US$4.1 billion in 2018. Adding in the convertible bonds, the overall deal will be the biggest equity raise since T-Mobile US Inc’s in 2020, data compiled by Bloomberg showed.

Sea’s subsidiary Shopee posted a 160% growth in revenue for Q2 2021, from a year ago / Image Credit: Shutterstock

Sea’s stock value has risen more than 70 per cent this year, fueled by an increase in gaming and e-commerce demand due to the pandemic.

In August, the tech giant raised its annual forecasts for its two main businesses, Garena and Shopee, reflecting the confidence in the businesses and the momentum gains.

The Tencent-backed consumer tech firm is the Southeast Asia’s most valuable company and has been rapidly expanding its market share.

Subsidiary Garena’s hit gaming titles include shooter game Free Fire, which hit a record high of over 150 million daily active users in the second quarter this year. For Shopee, it posted a 160.7 per cent growth in revenue for Q2 2021, compared to a year ago.

The surge in Sea shares also led its CEO, Forrest Li to become Singapore’s richest person in August.

Other notable fund raise from sea include a US$2.6 billion stock sale last year, and a US$1.35 billion share sale in 2019.

Featured Image Credit: Sea Limited

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