Sea Limited, the company behind e-commerce Shopee and digital entertainment platform Garena, has announced that it has closed their offering of 60,000,000 American Depositary Shares (ADSs), each represents one Class A ordinary share of the Company, at US$22.50 per ADS. An additional option of 9,000,000 ADSs underwriters offering was also being exercised, bringing the total of 69,000,000 ADSs offered and over US$1.5 billion total amount of funds raised.
As of publishing, the sale marks a slight discount as shares are currently priced at US$23.70.
In this offering, Goldman Sachs (Asia) L.L.C. and Morgan Stanley & Co. LLC acted as joint book-runners. China International Capital Corporation Hong Kong Securities Limited acted as a co-manager for the offering.
Sea Limited said it plans to use the net proceeds to focus on business expansion and other general corporate purposes.
“With the cash gained from this offering, we can support our growth plans. With Shopee, we intend to continue to invest in solidifying its leadership position, and enhancing the long-term sustainability of the platform,” said Forrest Li, Founder and Group Chief Executive Officer of Sea.
Li also noted on the company’s successful feat with Shopee, which is expected to receive a chunk of the financing.
“In just three years, Shopee has managed to establish its position as leading e-commerce platform in our region, and continue scaling with efficiency. We believe the key is in the way we allocate capital to capture significant opportunities in our region’s growing digital economy,” he added.
On Garena, Li highlighted the plan to build experience to serve gamers in Southeast Asia. There are already new game titles in the pipeline and the plan is to expand Garena’s capabilities to identify and address the needs of more gamers in more important markets globally, he mentioned.
The offering was automatically made effective upon filing with the U.S. Securities and Exchange Commission (“SEC”) on March 1, 2019.