Sea Ltd plans US listing in 2018

Singapore-based Sea considering listing in early 2018

SINGAPORE: Sea Ltd, South-East Asia’s most valuable start-up, has filed confidentially for a potential US initial public offering (IPO) that could raise about US$1bil, according to people with knowledge of the matter.

The Singapore-based company, formerly known as Garena, filed with the US Securities and Exchange Commission (SEC) in the past few weeks, according to the people, who asked not to be identified because the information is private.

Sea is considering listing in early 2018, though no final decisions have been made, one of the people said.

Sea is working with Goldman Sachs Group Inc and Morgan Stanley on the share sale, the people said.

Under the Jumpstart Our Business Startups Act, companies with less than US$1bil in annual revenue can file for an IPO with the SEC privately and work out the details outside the public eye.

The company, founded in 2009 by entrepreneur Forrest Li, began as an online gaming portal and has since branched out to add mobile shopping and payment services.

A US$1bil deal would be the larg- est technology IPO out of South-East Asia, according to data compiled by Bloomberg, and be a boon for backers such as Tencent Holdings Ltd.

Representatives for Sea, Goldman Sachs and Morgan Stanley declined to comment.

The start-up said earlier this month it raised another US$550mil in funding as it stepped up a battle in Indonesia with rivals including Chinese e-commerce giant Alibaba Group Holding Ltd.

The latest funding round brought in some of the region’s wealthiest families as new investors, including GDP Venture, backed by the son of Indonesian clove-cigarette tycoon Budi Hartono, and JG Summit Holdings Inc, founded by Philippine billionaire John Gokongwei.

Any overseas listing of Sea would be a blow for Singapore, which has been trying to woo local start-ups to sell shares at home as it seeks to build a regional hub for fast-growing, innovative companies.

Singapore Exchange Ltd is nearing a deal with the country’s technology regulator to develop a system for pairing start-ups with investors, in a move to encourage such listings, people with knowledge of the matter said this week.