Sea Looks To Raise $6.3B And Expands In Europe, India

This Is Southeast Asia's Biggest Fundraising

Sea Limited, the e-commerce, gaming and fintech company is looking to raise $6.3B in a share and convertible bond sale in what would be Southeast Asia's largest ever capital raising. This fresh capital intake would help the company unlock new markets and fund acquisitions.

Opportunistic Cash

Sea Limited already has $7B in cash on its balance sheet and this new capital inflow would boost it to $13B. All while the company isn't burning through cash as it manages to use its highly profitable gaming operations to fund its e-commerce and fintech expansions.

In this light, the capital raise appears opportunistic and aimed at taking advantage of a share price hoovering near all-time highs.

"Sea, the biggest among all Southeast Asian companies by market value, plans to use the proceeds for general corporate purposes, including strategic investments and acquisitions. [...] Sea's Shopee is planning to expand into Europe and India, Reuters has reported. Late last year, Sea also secured a full digital bank licence in Singapore." By Scott Murdoch and Anshuman Daga

Expanding In Europe

Sea Limited's e-commerce branch is looking to expand in Europe and is hiring sellers in Poland. At the same time, the company is looking to launch in India after aggressively expanding in Latin America.

"Polish news website Wiadomoscihandlowe.pl first reported the Shopee expansion into Poland. Sea did not immediately answer a Reuters request for comment. [...] Market research firm Euromonitor estimates the Polish e-commerce market to be worth 16 billion euros ($19 billion), with significant room for growth compared to Western countries." by Fanny Potkin for Reuters

Disclaimer

Please note that this article does not constitute investment advice in any form. This article is not a research report and is not intended to serve as the basis for any investment decision. All investments involve risk and the past performance of a security or financial product does not guarantee future returns. Investors have to conduct their own research before conducting any transaction. There is always the risk of losing parts or all of your money when you invest in securities or other financial products.

Credits

Photo by Meriç Dağlı on Unsplash.