Singapore-headquartered consumer Internet company Sea Ltd, formerly known as Garena, on Thursday said Chinese internet giant Tencent Holdings has indicated an interest in purchasing up to $100 million worth of shares in the company’s proposed initial public offering (IPO).
Sea Ltd, which is making its debut on the New York Stock Exchange (NYSE), has scaled down its public offering size to $800 million, down by almost $200 million, as per an SEC filing last week.
The company is offering 49,690,000 ADSs (American Depository Shares) in the IPO, at a price ranging from $12 to $14.
“Tencent Holdings Limited, one of our principal shareholders, has indicated an interest in purchasing up to US$100 million of the ADSs representing Class A ordinary shares in this offering at the initial public offering price and on the same terms as the other ADSs being offered,” Sea Ltd said in the latest filing dated October 12.
“Our principal shareholders, Forrest Xiaodong Li, our founder, chairman and group chief executive officer, and Tencent Holdings Limited and its affiliates, will beneficially own all of our issued Class B ordinary shares, and will be able to exercise an aggregate of 74.5% of the total voting power of our total issued and outstanding ordinary shares immediately upon the completion of this offering, assuming the underwriters do not exercise their option to purchase additional ADSs,” the filing added.
The proceeds from the listing will be used by the company for growing its business, including user acquisition, content procurement and research and development while the remainder will be deployed for working capital and other general corporate purposes.
Sea Ltd’s key businesses include digital entertainment (Garena), e-commerce (Shopee) and digital financial services (AirPay). It is looking to grow and monetize its user base and develop the fintech platform.