A Singapore’s startup Sea Ltd has raised a total sum of $884 million in its Initial public offering (IPO) in New York. The company sold 59 million American depositary shares for $15 apiece, offering more shares and pricing them above its initial range of $12 to $14 each.
Benefiting from Chinese Company’s Support
The gaming company which is backed by Tencent Holdings Ltd has benefited from the Chinese company’s support. Sea licenses game from Tencent. Financial specialists are gathering up Sea’s offers in spite of rising misfortunes at the organization as it enhances into internet business and instalments. Sea had a net loss of $165.2 million in the main portion of the year on income of $195.5 million.
About Sea Ltd
Sea Ltd, an online gaming company which was earlier named as Garena, was founded in 2009 by Forrest Li. Sea branched out with a digital payments service called AirPay in 2014 and the mobile shopping business Shopee in 2015.
Sea’s Gaming Business
Sea’s games business still accounts for more than 90 percent of total revenue. Sea offers games for free and later collects money when players buy virtual items like armour, weapons or special skills. It makes money in e-commerce from commissions and advertising, while collecting fees from payments.
Attracting Marquee Backers
With Tencent’s support, Sea has attracted marquee backers which include Ontario Teachers’ Pension Plan, Malaysia’s sovereign wealth fund and several Asian billionaires. Financial companies such as Goldman Sachs Group Inc., Morgan Stanley and Credit Suisse Group AG are leading the public offering.