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Singapore Sea Ltd., the tech startup that has become the most valuable company in Southeast Asia, increased the size and set the final price of a secondary stock offering to raise at least $ 2.57 billion.
Sea valued the sale of 13.2 million American Depositary Shares at $ 195 each, increasing in size to $ 11 million due to strong demand, according to a declaration. Subscribers, led by Goldman Sachs Group Inc. and JPMorgan Chase & Co., has the option for another 1.98 million ADS, which would produce 386 million dollars at the same price.
Sea, a gaming company that has expanded into e-commerce and digital payments, has risen to a market valuation of nearly $ 100 billion and its stock is up 395% this year alone. It intends to spend the proceeds of the new offering on business expansion, “including potential strategic investments and acquisitions,” the company said in its statement.
The company just won a license to open a digital bank in Singapore, a coveted award that will allow expansion into financial services. Below Under the criteria set out by the Monetary Authority of Singapore, full digital banks must have a total capital of at least S $ 1.5 billion ($ 1.1 billion), with S $ 15 million on entry and a progressive increase in capital. .
The new capital could be used for your digital bank or to accelerate investments in e-commerce and games, Bloomberg Intelligence analysts Matthew Kanterman and Joyce Ho wrote in a note.
Sea’s first mobile game, a Battle Royale called Free Fire, has attracted tens of millions of players and its game is now one of the most viewed attractions on YouTube. The company’s Shopee platform has also risen in sync with increased demand for home shopping and food delivery, having taken over the role of Southeast Asia’s leading e-commerce provider in late 2019, according to research firm iPrice.
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Investors have bet on Sea becoming the Tencent Holdings Ltd. and Alibaba Group Holding Ltd. became one, although the company’s most recent quarterly The results showed a slight slowdown in its prodigious growth rate.
