Chinese internet giant Tencent seeks to buy $100m of stock in Sea IPO

Photo: Sea Group

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.

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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.