Sea Raises US$884 Million in IPO

Published By : 26 Oct 2017 | Published By : QYRESEARCH

Singapore-based Sea has announced it has raised close to US$884 million in IPO. The total amount raised in the IPO could well reach US$1 billion if the company exercises the option to sell additional shares. The company initially valued its shares at US$12-US$14 each, but sold close to 60 million American depository shares at a value of US$15 per share in the IPO. Sea, which is Southeast Asia’s most valuable startup, had a net loss of US$165.2 million in H1 2017 on revenue of US$195.5 million. However, this hasn’t stopped investors from flooding the company with new funding based on the commercial potential of Sea’s recent entry into e-commerce and digital payments. Sea was valued at US$3.75 billion at the time of its fundraising in 2016 and will rise to more than US$4 billion following this IPO.

Sea is a diversifying company with interests in a number of sectors. However, gaming remains the key revenue generation area for the company, following its conception as a gaming company in 2009. The company was then rebranded Sea from Garena, the latter remaining the name of the company’s gaming sector. Sea launched AirPay, a digital payment service, in 2014, followed by Shopee, which focused on mobile shopping, in 2015. Sea is backed by growing Chinese investor Tencent, which has allowed Sea to garner a commendable array of investors including Morgan Stanley, Goldman Sachs Group Inc., Credit Suisse Group AG, and the Ontario Teachers’ Pension Plan. Tencent holds 40% of Sea and licenses games to the latter.

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