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Sea valued the sale of 13.2 million American Depositary Shares (ADS) at $ 195 each, increasing in size to $ 11 million due to strong demand, according to a statement. Underwriters, led by Goldman Sachs Group and JPMorgan Chase & Co, have the option for another 1.98 million ADS, which would yield US $ 386 million 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 shares are up 395% this year alone.
It intends to spend the proceeds of the new offering on business expansion, “including potential investments and strategic acquisitions,” the company said in its statement.
The company has just obtained a license to open a digital bank in Singapore, a coveted award that will allow expansion into financial services. According to the criteria set by the Monetary Authority of Singapore, full digital banks must have a total capital of at least S $ 1.5 billion, with S $ 15 million on entry and progressively increasing 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 his 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.
Investors have bet that Sea will become their region’s Tencent Holdings and Alibaba Group Holding one, although the company’s most recent quarterly results showed a slight slowdown in its prodigious growth rate.
BLOOMBERG
READ MORE: Singapore Sea to Raise Around US $ 2 Billion in Stock Offering
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