Will Monee IPO spinoff fatten the wallets of Sea investors? DBS weighs in
Sea’s Monee listing can have upside but ‘real’ hurdles persist, says research house
DBS Group Research maintains a positive outlook for Sea, the Singapore tech conglomerate, following its announcement of a potential Monee listing. However, the research house underscores that several "real" hurdles still exist for the fintech arm's spinoff, including regulatory hurdles and potential impact on Shopee's user base.
DBS's analysts estimate Monee's valuation to fall between $18 billion and $22 billion, which could potentially lead to a 21% increase in Sea's share price if the spinoff succeeds. Despite robust growth figures in Monee's most recent quarter, credit loss provisions are rising, primarily due to off-Shopee SPayLater lending and exposure to riskier markets.
A standalone Monee listing before 2027 appears unlikely due to regulatory challenges in the eight markets where the company operates. DBS also downgraded Sea's stock to a "hold" rating, maintaining its US$105 target price.
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