In today’s briefing:
- Lalatech IPO: The Bull Case
- Samhi Hotels Pre-IPO – Refiling Updates – Bigger Portfolio, Smaller Deal
- EbixCash IPO: The Bear Case
- Rakuten Securities IPO Early Look – The Positives – Has Been Gaining Market Share
- Mobvoi Pre-IPO – Has Turned Profitable but Bulk of Growth Came from a Single Customer
Lalatech IPO: The Bull Case
- 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.
Samhi Hotels Pre-IPO – Refiling Updates – Bigger Portfolio, Smaller Deal
- SAMHI Hotels (SAMHI IN) plans to raise around US$200m (estimated) in its Indian IPO.
- Samhi is India’s third-largest hotel asset owner, by number of keys, with a portfolio of 25 operating hotel assets comprising 3,839 keys, as of Feb 2023.
- In this note, we look at its updated filings and discuss the changes since its last filing in 2019.
EbixCash IPO: The Bear Case
- 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.
Rakuten Securities IPO Early Look – The Positives – Has Been Gaining Market Share
- Rakuten Securities (RAKUSEC JP), the online securities arm of Rakuten, aims to raise around US$500m (estimated) in its Japan listing.
- It is the largest online securities firm in Japan with a 33.7% market share. In FY22, it had over 8.64m accounts, with around JPY18.2tn (US$131bn) of assets under custody.
- In this note, we talk about the positive aspects of the deal.
Mobvoi Pre-IPO – Has Turned Profitable but Bulk of Growth Came from a Single Customer
- Mobvoi (2185047D CH) is looking to raise about US$200m in its upcoming Hong Kong IPO.
- Mobvoi is an AI company focusing on generative AI and voice interaction technologies. As per CIC, the firm is the largest revenue-generating AI company focusing on AI-generated content in 2022.
- Mobvoi’s revenue growth was primarily driven by its AI enterprise solutions segment, which led to gross margin expansion and profitability turning positive on all fronts in FY22.
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