One-Time Richest Singapore Tycoon Lost 80% of His Fortune
Just a few months ago, Forrest Li had a US$22 billion (FJ$48 billion) fortune and was the richest person in Singapore. Now he’s emerging as one of the biggest losers from a market crash that’s wiped more than
US$1 trillion
(FJ$2.18 trillion) from the net worth of the world’s 500 richest people this year.
It’s been a litany of unfortunate events for the Sea Ltd. founder: The tech selloff, the shutdown of its main e-commerce operation in India and disappointing earnings have tanked the company’s American depository receipts more than 80% from a peak in October. He’s still rich -- worth US$4.7 billion (FJ$10.27 billion), according to the Bloomberg Billionaires Index -- but no longer enough to make the cutoff for the top 500 on the planet.
Traders are preparing for more bad news. The company, which is scheduled to report firstquarter
earnings later yesterday, is expected to post a record loss of more than $740 million (FJ$ 1,617 million), according to the average analyst estimate compiled by Bloomberg.
Sea’s net loss had already widened in the final three months of last year as the firm sped up its expansion.
The downfall showcases the vulnerability of the quick wealth creation from the early stages of the COVID-19 pandemic -- when tech giants benefited from greater demand for their services such as Sea’s e-commerce and gaming. Higher interest rates and the tensions surrounding the war in Ukraine are further hurting growth stocks.