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S’pore tech giant Sea Ltd to raise S$8.5B to fund global expansion and acquisition plans

Singapore tech giant Sea Limited is looking to raise US$6.3 billion (S$8.5 billion) to drive global expansion and acquisitions.

The parent of Shopee, Garena and SeaMoney is offering 11 million shares, which is worth about US$3.8 billion as of Wednesday’s close, Bloomberg reported. It also intends to issue US$2.5 billion of equity linked debt.

Sea will use the latest capital toward business expansion and other general corporate purposes, including potential strategic investments and acquisitions, the company said in a statement.

The 11 million shares will mark as the biggest equity sale since Chinese e-commerce operator Pinduoduo raised US$4.1 billion in 2018. Adding in the convertible bonds, the overall deal will be the biggest equity raised since T-Mobile US Inc’s in 2020, data compiled by Bloomberg showed.

Sea’s stock value has risen more than 70 per cent this year, fueled by an increase in gaming and e-commerce demand due to the pandemic.

In August, the tech giant raised its annual forecasts for its two main businesses Garena and Shopee, reflecting the confidence in the business and the momentum gains.

The Tencent-backed consumer tech firm is the region’s most valuable company, and has been rapidly expanding its market share. Hit gaming titles include shooter game Free Fire.

The shares surged also led CEO of Sea, Forrest Li to become Singapore’s richest person in August.

Last year, Sea held a US$2.6 billion stock sale and in 2019, it held a US$1.35 billion deal.

Featured Image Credit: Sea Limited

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