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Sea aims and shoots for the year’s biggest equity dealINTL

Sea aims and shoots for the year’s biggest equity deal

The biggest equity offering of the year is set to come from Singapore as the online gaming, e-commerce, and FinTech all-in-one company Sea Ltd (SE) is looking to raise $6.3b through 11 million new shares and $2.5b of equity-linked debt.

The Tencent-backed company operates as a video games developer, an e-commerce platform across Southeast Asia, and a regional digital payments provider. During Covid-19, the firm saw a rapid growth in its market share (and its stock) as both e-commerce and gaming levels saw an uptick.

Armed with the momentum, the company aims to use the offering proceeds to expand into new business lines and geographies such as e-commerce for Latin America and food delivery regionally. As competition within the tech industry intensifies, an expansion into new verticals becomes the logical next step. In-line with ambitious growth plans, Sea Ltd’s stock has risen by more than 70% since the start of the year.

why it matters

Asia’s equity offerings are breaking record after record. Before Sea Ltd, EV-maker Nio Inc announced on Tuesday what has now become the biggest US offering by a Chinese company. Prior to that, ride-hailing app Didi (DIDI) was the proud holder of the title.