Asia-based digital services provider Sea has completed its convertible senior notes offering on $575m.
The company had increased its offering from $400m up to $500m due to strong investor demand. With an exercise of 15 per cent ‘greenshoe’ option, the initial purchaser brought the total to $575m. This sale was a 2.25 per cent convertible senior notes due in 2023.
Sea operates across three brands, a digital payment app AirPay, e-commerce platform Shopee and Garena, a video game localiser and operator. The group operates within Indonesia, Taiwan, Vietnam, Thailand, the Philippines, Malaysia and Singapore.
AirPay enables consumers to complete transactions at small businesses via their e-wallets by using the AirPay app. The solution is possible through the mobile app or at an AirPay counter at partnered stores. AirPay counters act as a ‘reverse ATM’ by serving as a cash input, helping the underbanked in greater southeast Asia.
Proceeds from this sale will be used to support business expansion, with a focus on developing its e-commerce platform Shopee.
Shopee is an e-commerce platform for greater Southeast Asia, offering a secure online shopping environment for categories ranging from electronics to fashion. Over the past year, it has seen big growth, with its gross merchandise value being $1.9bn for the first quarter of 2018.
A handful of new services have been added to Shopee recently, including inventory management, online store operations, fulfilment services, and ‘Shopee Logistics Service’, which helps sellers that have logistic complexities like cross-border delivery.
Sea chairman and Group CEO Forrest Li said, “The enthusiastic response to this offering highlights the strength of global investor interest in Sea’s unique position at the heart of our region’s burgeoning consumer growth story, and we believe these convertible notes offering is a highly cost-effective means for us to tap into this demand.”
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