Sea Group is designed to attack the customer financing industry with the spin-off of Monee, but the challenges related to its valuation could be bigger.

The IPO proposal of Monee, proposed by the company, has been approved by an internal member of Sea Group. This event has caused a negative reaction from DBS Research, which has maintained a price target of $105 for Sea Group's stock and has declared a 'support' on Sea Group. The valuation of Monee, based on EBITDA projections, has been estimated between $18 and $22 billion. Additionally, credit pressure has increased by 75% in the second quarter of 2026, primarily attributed to Off-Shopee SPayLater and adapting to risky markets such as Brazil, which represent around 15-16% of their total revenues. The regulations in effect in various countries where Monee operates can prevent a spin-off before 2027, while new OJK (Financial Services Authority of Indonesia) regulations could limit debt percentages to 40% until 2027, making a complete separation of Monee necessary. The market reaction followed the announcement of Monee's spin-off: its share value fell 9.1% compared to $8.04, ending at $80.43. The future of Monee will depend on its ability to overcome these challenges and attract acceptable investors. The customer financing industry is advancing, but accurately valuing a spin-off can be a significant obstacle for the company. The IPO proposal of Monee is an example of how technology and e-commerce are changing the way companies manage their businesses. However, even if the spin-off of Monee may bring benefits, we should not forget that the challenges related to its valuation could be bigger than what we imagine. In conclusion, the spin-off of Monee represents a crucial moment in Sea Group's history, but also a test for the company. It will be important that the company succeeds in overcoming these challenges and effectively attacks the market of customer financing.

The spin-off of Monee represents a moment of truth for Sea Group, but also a moment of opportunity for the company. It will be important that the company succeeds in overcoming these challenges and attaks the market of customer financing in an effective way.