Singapore’s Sea Limited Files With SEC To Offer 11 Million American Depositary Shares

Singapore-based Sea Limited has filed with the SEC to offer 11 million shares of its American Depositary Shares (ADSs), each representing one Class A share of ordinary company stock.

The deal will also grant a 30-day option to underwriters to purchase an additional 1.65 million ADSs on the same terms. Goldman Sachs (Asia) and J.P. Morgan Securities will serve as joint bookrunners on the transaction, Sea said in a statement.

The pricing and timing of the transaction have not yet been disclosed. All of the securities offered will be sold by the company.

Sea Limited (Nasdaq: SE) said it plans to use the cash for business expansion, strategic investments, acquisitions and other corporate purposes. According to its SEC filing, the company has been operating at a loss since 2018.

Sea Limited operates three businesses: Garena, a leading online games developer and publisher; Shopee, an eCommerce platform serving customers in Southeast Asia and Taiwan; and SeaMoney, which provides digital payment and financial services throughout Southeast Asia. The company was founded in 2009.

On Dec. 4, the Monetary Authority of Singapore (MAS) chose four firms to receive digital banking licenses, which included “digital full bank” licenses for Sea Limited and a consortium of Southeast Asia’s Grab Holdings and technology group Singtel.

Authorities also selected China’s Ant Group and a consortium of Greenland Financial Holdings Group, Linklogis Hong Kong Ltd. and Beijing Co-operative Equity Investment Fund Management Co. to receive “digital wholesale bank” licenses.

“MAS applied a rigorous, merit-based process to select a strong slate of digital banks,” MAS Managing Director Ravi Menon said in announcing the move. “We expect them to thrive alongside the incumbent banks and raise the industry’s bar in delivering quality financial services, particularly for currently underserved businesses and individuals. They will further strengthen Singapore’s financial sector for the digital economy of the future.”