Forrest Li lost his spot as the richest man of Singapore Sea’s stock price falls after Tencent sold off some of its shares. Sea Limited is a holding company that owns two of the largest Singaporean tech companies, Garena and Shopee. Garena is known for its worldwide hit battle royale game, Free Fire. The popularity of the online game skyrocketed during the covid-19 pandemic which caused Li to amass a fortune of $19.8 billion in August 2021.
Sea’s stock price falls with Tencent’s movement
Tencent, the tech giant of China held 21.3% of stocks in Sea Limited. As stated in the official press release, the number has come down to 18.7% when Tencent sold 2.6% of the stocks it owned, taking its voting rights to below 10%. This resulted in Sea Limited losing a lot of money and most importantly its founder Forrest Li has lost more than $2 billion in the last two days.
The company which was Southeast Asia’s most valuable company a few months back has incurred heavy losses in the last couple of days. They dominated the market with Shopee, an e-commerce platform and Garena, a game development studio. Garena has gained popularity in the last two years as its online battle-royale game Free Fire became a global sensation during the pandemic.
However, this latest incident has caused the company to suffer losses and Li has lost the top spot in the list of richest people of Singapore. Now he’s Singapore’s third-richest person, after Li Xiting of medical-equipment maker Shenzhen Mindray Bio-Medical Electronics Co. and Nippon Paint Holdings Co.’s Goh Cheng Liang.
Bloomberg Intelligence analyst said that the company will keep losing its valuation until its profitability sees some increment. Forrest Li is currently valued at $11 billion while the other co-founders of Sea Limited Gang Ye and David Chen are valued at about $6 billion and $2 billion respectively.
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