Sea raises $575mn in convertible notes offering

Singapore-based unicorn Sea, which is listed in New York, has raised a total of $575mn following a convertible notes offering. A ‘convertible notes offering’ issues bonds to shareholders which can then be converted wither into a specific number of shares of common stock, or cash of equivalent value.

The offering size increased from the expected $400mn to $500mn due to demand, and then a 15% ‘greenshoe option’ was utilised to bring the total value to $575mn. A ‘greenshoe’ is a clause which allows the underwriters of an offering to buy up an additional 15% of shares at the offering price.

Sea has said it will use the finance to expand its business, in particular for the expansion of popular e-commerce platform Shopee.

See also:

Sea to float on New York Stock Exchange, hopes to raise $1bn

Amazon Prime launches in Singapore to rival Sea

Singapore IPOs up by 78% in first half of 2018

Forrest Li, Chairman and Group CEO stated: “With this additional capital further bolstering our balance sheet, we are in an excellent position to continue to capture the significant growth opportunity ahead of us, particularly in the highly promising e-commerce sector where Shopee is already a regional leader.”

He added: “We are pleased to deepen our engagement with several of our existing investors through this transaction, and to partner with a number of new investors who share our excitement in the potential of our region and recognise Sea’s unrivalled leadership.

“Shopee is growing rapidly, ahead of our already ambitious expectations, and benefiting from ever improving cost efficiencies as it grows. We intend to continue to invest in extending our leadership positioning e-commerce, and in providing new and innovative services.”

 According to a press release, Shopee currently has a gross merchandise value (GMV) of $1.9bn, having enjoyed a year-on-year increase of 199.5%.

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