Sea Ltd (NYSE:SE) could consider an initial public offering (IPO) for its digital financial services business, Monee, as the division continues to expand, according to a Wall Street Journal report published on Tuesday.
The report cited an internal memorandum from Sea Chief Executive Officer Forrest Li, who indicated that Monee was approaching a stage at which it could operate as an independent business.
The memorandum marked the ninth anniversary of Sea’s listing on the New York Stock Exchange and outlined the development of the company’s principal operating divisions.
Monee has been Sea’s fastest-growing business in recent quarters. The company also operates Shopee, its e-commerce platform, and Garena, its digital gaming division.
According to the Wall Street Journal, Li said all three businesses had reached significant scale, were profitable and continued to expand.
Li also highlighted the role of Sea’s public listing in providing access to capital and establishing credibility, while allowing a broader range of investors to participate in the company’s development.
A separate listing for Monee could provide the financial services division with additional access to capital as Sea continues developing its operations in the sector.
However, the Wall Street Journal reported that Li did not specify a timetable for a potential IPO or disclose details regarding the structure or size of any proposed offering.
The comments indicate that a public listing is being considered as a possibility rather than a confirmed transaction. No formal IPO plans or listing arrangements were disclosed in the report.