Sea seeks $6.3 billion in one of Southeast Asia’s biggest fundraisings

Sea Ltd, a Southeast Asian e-commerce and gaming company, plans to raise $6.3 billion in a share and convertible bond sale in one of the region`s largest ever capital raisings, according to the firm`s regulatory filing.

The Singapore-headquartered company is looking to sell 11 million American Depository Receipts (ADRs), with the option to offer 1.65 million more as part of a so-called greenshoe option, Sea said in its filing on Thursday.

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It is also raising $2.5 billion in a convertible bond that has a $375 million greenshoe attached.

At Sea’s closing stock price of $343.8 in New York on Wednesday, the share sale could raise up to $3.8 billion.

This is the second major fund raising in less than a year for the $185 billion company that is looking to scale up its global expansion by testing out possible new markets.

Sea, Southeast Asia`s top company by market capitalisation, said it plans to use the proceeds for general corporate purposes, including strategic investments and acquisitions.

In December last year, Sea raised $2.57 billion in a discounted share sale at $195 a share. It also finalised a $1 billion convertible bond sale in May in 2020.

Fintech and e-commerce companies in Southeast Asia have been raising hefty amounts of capital as global investors bet on post-pandemic technology plays emerging in the region.

Companies have raised a total of $15.67 billion in equity capital markets in Southeast Asia in 2021 - the most in three years, Refinitiv data shows - versus $11.8 billion over the corresponding period in 2020.

Sea`s e-commerce platform Shopee is planning to expand into Europe and India. Late last year, Sea also secured a full digital bank licence in Singapore.

Shares of the company have risen 72.72% this year, after an almost five-fold jump in 2020 amid strong demand as COVID-19-related restrictions forced people indoors.