South Asia’s most valuable startup, Singapore’s Sea Ltd, raised about $884 million in its Initial Public Offering (IPO) in New York.
According to Friday’s statement, $59 million depositary shares sold for $15 each while the gaming company is offering and pricing more shares above the range of $12 to $14 a piece. If the option of selling additional shares is exercised, total amount will be more than $1 billion.
The company is supported by Tencent Holdings Ltd, a Chinese company which also holds 40% in the smaller company. This backing is essential for the company as Sea licenses games from Tencent. It is believed that Sea will exceed 4$ billion in its 2017 fundraising with the IPO.
Sea offers games for free and collects money when players buy virtual items like armor, weapons or special skills. The company also makes money from commissions and advertising (e-commerce) and at the same time earns fees from payments.