From Banking to Gaming: Sea Limited Overtakes DBS as Singapore’s Largest Company

Everyone in Singapore knows Shopee.

But did you know its parent company just overtook Southeast Asia’s biggest bank?

Shares of Sea Limited (NYSE: SE) have quietly surged past DBS Group (SGX: D05) to become Singapore’s most valuable company by market cap.

The numbers tell the story: on Tuesday, Sea Limited was valued at S$143 billion, just above DBS at under S$142 billion.

That’s a lead of roughly S$1 billion.

It’s a remarkable shift that says as much about where investors are placing their bets as it does about these two very different companies.

Why did Sea Limited’s share price rocket past a rock-solid bank like DBS?

It is because the market cap isn’t just about today’s profits.

Instead, it is about tomorrow’s potential.

Investors buying Sea Limited aren’t just buying the current business.

They’re buying into Southeast Asia’s digital transformation story.

And that story comes with a premium price tag.

Tech companies get higher valuations because investors believe their growth runway is longer and steeper than what traditional banks can deliver.

The question we need to answer is: are they right?

Sea Limited’s rise reflects something bigger happening across Southeast Asia.

The company’s three pillars of gaming (Garena), e-commerce (Shopee), and digital payments (SeaMoney) have all shown strong growth lately.

Shopee’s gross merchandise volume jumped 25% year-on-year in the first half of 2025. Over the same period, Digital Financial Services revenue surged 64%.

Even Garena, which faced tough times recently, now expects bookings to grow over 30% in 2025.

Market optimism stems from Sea Limited’s grip on Southeast Asia’s expanding digital economy.

With nearly 50% market share in regional e-commerce, the company is positioned to ride the wave of rising digitalization and fintech adoption.

The company has also been cutting costs aggressively, including layoffs and exiting certain international markets to focus on profitability.

But it’s not all smooth sailing.

Competition from TikTok Shop, Lazada, and others keeps intensifying. Profitability pressures persist in some segments. And high-growth businesses can be volatile.

Meanwhile, DBS keeps doing what it does best: generating consistent returns.

The bank maintains market-leading returns on equity around 15% and holds a commanding position in Singapore’s banking sector. It offers something Sea Limited can’t match: stability, regular dividends, and predictable performance.

DBS reported strong Q2 2025 earnings, with tactical hedging helping offset rate pressures.