Daily Brief Consumer: Lalatech Holdings Co Ltd, Ferrari N.V., EbixCash, Genting Bhd, RCI Hospitality Holdings, Freakins, Organto Foods and more

• Lalatech Holdings Co Ltd (LALA HK), a leading logistics transaction platform, has filed for an HKEx IPO to raise US$1 billion, according to press reports.   
• Lalatech is the largest logistics transaction platform in the world by closed-loop freight gross transaction value in the first half of 2022, according to Frost & Sullivan. 
• The key elements of the bull case rest on solid growth, rising monetization rates, achieving maiden profitability, a shift to cash generation and a debt-free balance sheet.

• The ES50 Index is one of the most highly-tracked indices in mainland Europe and the annual index review takes place in September.
• As ES50 index changes generally involve large cap names, these Rebalance events have historically had significant volume and ADV impact.
• In this insight, we take a look the names leading the race to become ADDs/DELs for the upcoming index review in September 2023.

• EbixCash (EBIXC IN), a subsidiary of Ebix Inc (EBIX US) and India’s largest end-to-end financial exchange, is seeking to launch an Rs60 billion (US$730 million) in July. 
• In EbixCash IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
• The key elements of the bear case rest on margin pressure due to rising operating costs, a related party being the largest customer, declining revenue visibility and deteriorating cash generation.

Genting Berhad’s subsidiary, Resorts World Las Vegas LLC (RWLV), is holding roadshows to market an issuance of USD 300 mn Reg-S/144A 7-year senior unsecured notes. The notes are rated BB+/BBB- by S&P and Fitch, respectively. The new notes will rank pari passu with the existing USD 1.35 bn of RWLVCA notes.

Proceeds from the notes issuance will be used to refinance a USD 300 mn subordinated shareholder loan from Genting Assets Inc. Hence, the transaction will be leverage neutral.

We see fair value for the proposed RWLVCA 2030 notes at c. 8.5%, as we expect the bonds to price in line with the existing curve. That said, there could be strong demand for the notes, given the small issuance size and dearth of issuance in the Asia crossover space so far this year.

• India-based fashion brand Freakins has bagged US$4 million in its seed round led by Matrix Partners India and Blume Ventures.
• Founded in 2021 by Shaan Shah and Puneet Sehgal, Freakins is a direct-to-consumer clothing brand that specializes in denim.
• The Gen Z-focused firm has built up a catalog of over 1,500 styles, which it says caters to different body types.

• Organto announced the launch of ORO, a brand focused on premium non-GMO fruits and vegetables.
• This morning, Organto Foods (OGO:TSXV) announced the introduction of its latest innovative brand offering, ORO.
• ORO focuses on premium non-GMO fruits and vegetables, complimenting the I AM Organic brand (organic fruits and vegetables) and =Awesome Fruits (mid-tier non-GMO fruits).