Shopee owner Sea overtakes DBS as South-east Asia’s most valuable company
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Shares of Shopee parent Sea have more than quadrupled since the start of 2024 as investors grew more convinced of its strength in the region.
PHOTO: ST FILE
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SINGAPORE – Singapore’s Sea has reclaimed its title as South-east Asia’s most valuable publicly traded company, surpassing DBS Group Holdings after a 300 per cent comeback rally powered by its e-commerce arm Shopee.
The internet company’s shares rose 1.1 per cent in New York on Aug 25 for a market capitalisation of US$111 billion (S$143 billion). Hours later, regional banking giant DBS finished 0.6 per cent lower in Singapore on Aug 26 for a valuation of US$110.3 billion – officially ceding the top spot to Sea.
Shares of Sea have more than quadrupled since the start of 2024 as investors grew more convinced of its strength in the region.
Its e-commerce arm Shopee has cemented its leadership in South-east Asia, where more consumers are going online to buy anything from smartphones to daily groceries. In August, Sea reported record sales that topped estimates, signalling it is succeeding in fending off hard-charging rivals including ByteDance’s TikTok and Alibaba Group Holding’s Lazada.
Years of investment in its online offerings and delivery operations has helped Sea retain its popularity, even as TikTok and Lazada, as well as newer entrants like Temu, target the region of more than 675 million people.
Meanwhile, a brutal cost-cutting drive has helped chief executive Forrest Li bring the company to profitability.
Sea is also betting on new initiatives such as digital finance to convince investors of its long-term earnings potential. A key secret weapon is its little-known logistics operation, SPX Express, which is powered by an army of home-makers, students and retirees making regular and reliable deliveries in markets such as Singapore.
Meanwhile, DBS shares have gained 65 per cent since the start of 2024 to reach record levels. Singapore’s largest lender pledged to return billions of dollars to investors via a dividend boost and share buybacks with cancellation after solid earnings driven by both lending and wealth-management income. BLOOMBERG
