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Sea Group, owner of Shopee, sets to raise $6 billion

September 13, 2021 3:26 pm

E-commerce and video game development company Sea Group aims to raise $6.3 billion in its second major fundraising this year.

Details:

Sea, one of the biggest Southeast Asian companies, is setting its sights on global expansion, such as rolling out a video-sharing app, according to a report on PingWest's Chinese site. It plans to use proceeds from this fundraising for general corporate purposes, including strategic investments and acquisitions. This $6.3 billion deal would be the most extensive fundraising in Southeast Asia, according to Refinitiv data.

The $185 billion company's shares have risen 72.72% this year, almost quintupled as demands for online shopping&gaming surges amid the pandemic.

Context:

Internet-based companies in Southeast Asia are booming right now. Global funds and investors are eyeing this market as the pandemic boosts digital platforms. With 650 million people in the region, there's vast potential and a lot at risk.

When cash is no longer the primary concern as abundant global liquidity has flown to Southeast Asia, the real difficulty is that companies have to expand and sustain their business models pan-regionally. There are only a few business models capable of that, according to Reuters citing Jeffrey Jaensubhakij, Chief Investment Officer at Singapore sovereign wealth fund GIC.