Regional internet major Sea to raise up to $1.55b in upsized US share sale

Sea founder Forrest Li. Photographer: Michael Nagle/Bloomberg

Regional internet company Sea Ltd is set to raise a minimum of $1.35 billion in a follow-on stock offering after pricing 60 million American Depositary Shares (ADS) at $22.50 each. The firm had earlier announced plans to sell 50 million shares.

The NYSE-listed company said it has also granted the underwriters a 30-day option to purchase up to an additional 9 million shares on the same terms and conditions. If the option is availed, Sea could raise as much as $1.55 billion in the share sale.

The offering is expected to close on March 8, 2019, subject to customary closing conditions, the company said.

An entity affiliated with Tencent Holdings Limited, one of Sea’s principal shareholders, and an entity affiliated with one of the company’s directors are expected to purchase an aggregate of 6.3 million ADS in the offering, which is managed by Goldman Sachs (Asia), Morgan Stanley, and China International Capital Corporation.

The company expects to use the net proceeds from this offering for business expansion and other general corporate purposes.

“Sea upsized the offering by 20 per cent to 60 million ADRs, so it’s clearly a hot deal (from bookbuild feedback) so they could price it at $22.50, which is a normal 6-7 per cent discount from 3/5 closing price (normal hours trading),” said Smartkarma analyst Johannes Salim.

The company had about $1 billion of cash and cash equivalents on its balance sheet as of December-end 2018. Sea, whose net loss widened to $961 million for 2018, has forecast that its annual adjusted revenues for both its gaming and e-commerce arms – Garena and Shopee – will more than double in 2019.

The company may also increase its capital expenditure on the unit and it has indicated that it is prepared to hire more game developers in emerging markets.

Last year, SEA had raised $575 million via a convertible note offering. The company had then said that strong demand from investors had led it to increase the offering size from its initial target of issuing $400 million worth of convertible senior notes due 2023.

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Southeast Asian internet firm Sea Ltd may add another $1b to cash pile

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.