From BigGo Finance · BigGo Finance · · 1m 30s
Sea Shares Drop 9% as DBS Flags Spinoff Hurdles
DBS warns Sea's Monee spinoff faces regulatory hurdles, pushing shares down 9.1%.
In brief
DBS warns Sea's Monee spinoff faces regulatory hurdles, pushing shares down 9.1%. Sea shares fell 9.1% after DBS Group Research identified licensing, debt rules, and partner complexities as obstacles to Monee's 2027 listing. Originally reported by BigGo Finance.
Sea Shares Slide
Sea shares fell 9.1 percent to us dollar 80.43 after db s group research said a potential listing of the group's fintech arm monee could unlock value but faces real obstacles.
DBS Valuation Estimate
Analyst sachin mittal values monee at us dollar 18 billion to us dollar 22 billion, versus the us dollar 6 billion implied by sea's share price.
Spinoff Timeline
DBS sees no listing before 2027 due to licensing rules in singapore, indonesia's 40 percent debt-to-income cap on buy-now-pay-later services from 2027, and a recent philippine licence.
Monee Financials
Monee's second-quarter revenue rose 58.9 percent to us dollar 1.4 billion, but credit provisions jumped 75 percent to us dollar 554 million.
Regulatory Hurdles
In singapore, investors seeking more than a 5 percent stake in mari bank need banking act approval; indonesia's financial services authority will cap debt-to-income ratios at 40 percent starting 2027.
Monee's Growth
Monee's loan book grew 62.5 percent to us dollar 11.1 billion, with credit provisions rising 75 percent to us dollar 554 million due to off-shopee spaylater lending and riskier markets.
Spinoff Challenges
A standalone monee would also have to deal with shopee on arm's-length terms, given the fintech business's heavy reliance on the e-commerce platform's customer base.
The main idea
Sea shares fell 9.1% after DBS Group Research identified licensing, debt rules, and partner complexities as obstacles to Monee's 2027 listing.
