If you invest in the ADSs, your interest will be diluted to the extent of the difference between the initial public offering price per ADS and our net tangible book value per ADS after this offering.
Dilution results from the fact that the initial public offering price per ordinary share underlying the ADSs is substantially in excess of the net tangible book value per ordinary share. Our net tangible book value as at September 30, 2013 was approximately $334.8 million, or $0.72 per ordinary share and $ per ADS. Net tangible book value per share represents the amount of total tangible assets, minus the amount of total liabilities, divided by the total number of ordinary shares outstanding. Dilution is determined by subtracting net tangible book value per ordinary share from the assumed initial public offering price per ordinary share, which is $ per ADS based on the closing price of our ordinary shares and the exchange rate set forth on the cover page of this prospectus and after deducting underwriting discounts, commissions and estimated offering expenses payable by us.
Without taking into account any other changes in our net tangible book value after September 30, 2013, other than to give effect to our sale of ADSs offered in this offering at the assumed initial public offering price of $ per ADS after deduction of underwriting discounts, commissions and estimated offering expenses payable by us, our adjusted net tangible book value as at September 30, 2013 would have been $ million, or $ per outstanding ordinary share, including ordinary shares underlying our outstanding ADSs, or $ per ADS. This represents an immediate increase in net tangible book value of $ per ordinary share, or $ per ADS, to existing shareholders and an immediate dilution in net tangible book value of $ per ordinary share, or $ per ADS, to purchasers of ADSs in this offering. The following table presents this dilution to new investors purchasing ADSs in the offering:
SEA Price at posting:
96.0¢ Sentiment: Buy Disclosure: Held
