WEEKLY IPOX® PERFORMANCE REVIEW: Most IPOX® Indexes followed the benchmarks lower during August expiration week, as the S&P 500 (SPX) completed a remarkable +17.41% rally from the June expiration lows by hitting its key 200-day moving average Tuesday before renewed bond weakness, dollar strength, profit taking and big weakness amongst high-beta (unseasoned) stocks ahead of Jackson Hole turned Momentum into the week-end. In the U.S., e.g., the broad-based diversified IPOX® 100 U.S. (ETF: FPX) shed -2.11% to -24.48% YTD, lagging the S&P 500 (SPX), however, outperforming the Nasdaq 100 (NDX). Amid the renewed surge in the U.S. dollar (EURUSD: -2.16%), weakness extended to non-domiciled exposure tracked in the IPOX® International (ETF: FPXI). We note another good week for the IPOX® MENA (IPEV), which tracks deal flow across the MENA region with technology stocks propelling the portfolio towards an all-time High Thursday. The outperformance in the more defensive parts of the market, including energy and large-pharma, drove the IPOX® GINDEX (GNDX) to a great relative week, declining -0.43% to -5.91% YTD.
IPOX® PORTFOLIO HOLDINGS IN FOCUS: Amid earnings and big IPO M&A activity across sectors, top of the list in the IPOX® 100 U.S. (ETF: FPX) ranked nutritional supplements seller Bellring Brands (BRBR US: +11.23%) which rose toward its post-IPO high after a JP Morgan upgrade and after completion of a secondary which contributed to soaring trading volume, recently. Stand-outs amongst (unseasoned) technology stocks dodging last week slump in the sector by reporting strong earnings included CA-based back-office software maker Bill.com (BILL US: +10.56%). In IPOX® Portfolio holdings domiciled abroad, we also note the fresh post-IPO high in 02/22 IPO Saudi-based and Tadawul-traded software maker Elm (ELM AB: +14.05%), while optimism over increasing travel demand pushed TUMI-owner, luggage maker, H.K.-traded IPO M&A Samsonite International (1910 HK: +13.61%) to a fresh multi-year High. Norway’s warehouse robots technology provider 10/21 IPO Autostore (AUTO NO: -11.57%) ranked amongst the worst performing firms on the week, driven by somewhat lackluster quarterly numbers and big overhang related to Japan’s Softbank Group, its (still) largest shareholder.
GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: 4 sizeable IPOs launched last week, with the average equally weighted deal gaining +77.79% based on the difference between the final offering price and Friday’s close. The deals included two Saudi-domiciled and Tadawul-traded firms, bottled water company Naqi Water (NAQI AB: +26.96%) an IT consulting company Saudi Networkers Services (NETWORKE AB: -5.21%). Thursday saw the U.S. IPO of Hong Kong B2B e-commerce firm GigaCloud Technologies (GCT US: +291.92%), while renewable energy firm Thachang Green Energy (TGE TB: -2.50%) listed in Thailand on Friday.
This week, 4 sizable IPOs are scheduled to launch internationally. Monday: South Korean car-sharing service SOCAR (403550 KS: $79m offer). Tuesday: Malaysian payment solutions provider Starbox (STBX US: $25m offer). Wednesday: Chinese real estate management services firm Suxin Joyful Life Services (2152 HK, $31m offer). Thursday: Travel retailer China Tourism Group Duty Free (1880 HK, $2.1b offer).
Other news include: 1) IPOX® 100 Europe (ETF: FPXE) and IPOX® International (ETF: FPXI) portfolio holding, AI Cybersecurity firm Darktrace (DARK LN), surges +35% on takeover talks with Thoma Bravo and reports of rival buyers. 2) IPOX® International (ETF: FPXI) heavyweight Aramco (ARAMCO AB) plans to spin-off multiple units. 3) CFO of IPOX® 100 Europe (ETF: FPXE) holding Sanofi (SAN FP) says sell-off amid Zantac litigation threats is “grossly overdone”. 4) IPOX® 100 U.S. (ETF: FPX) stock Keurig Dr. Pepper (KDP US) ends talks to buy Vital Pharmaceuticals, parent of Bang Energy drinks. 5) IPOX® 100 Europe (ETF: FPXE) portfolio holding EQT (EQT SS) offers to buy skin care firm Karo Pharma (KARO SS). 6) U.S. slot machine maker and 2018 IPO PlayAGS (AGS US) surges on takeover interest by Inspired Entertainment (INSE US). 7) U.K. premium fashion retailer Ted Baker (TED LN) jumps on takeover by Reebok-owner Authentic Brands. 8) Software firm Unity (U US) slumps after rejecting $20b merger offer by AppLovin (APP US). 9) Hedge fund Third Point buys stake in Disney (DIS US), calls for spin-off of sports network ESPN. 10) Just Eat (TKWY NA) surges after announcing sale of $1.8b stake in Latin American JV iFood to IPOX® portfolio holding Prosus (PRX NA). 11) Qatar-backed sports media firm Group One mulls. U.S. IPO after $1.35bn valuation. 12) Madison Square Garden (MSGE US) plans unit spin-offs.
THE IPOX® SPAC (SPAC). The index, currently composed of a 50 high conviction plays trading at both the pre- and post-consummation stage, declined by -4.07% to -13.49% YTD. IPOX® SPAC Leaders recording notable upside/downside moves last week included oil and natural gas company HighPeak Energy (HPK US: +7.35%), while EV fast charging network EVgo (EVGO US: -19.03%) slumped. Other SPAC news from last week: 1) 2 SPACs Announced Merger Agreement include LIV Capital II (LIVB US: +0.50%) with Mexico-based fintech Covalto. 2) 1 SPAC Approved Business Combination include Silver Crest (SLCR US: +0.50%) with fast food and coffee chain Tim Hortons China (THCH US: TBA). 3) 6 SPACs terminated merger deal include a) Bright Lights (BLTS US: +0.17%) with men’s grooming products e-commerce firm MANSCAPED and b) 10X Capital Venture II (VCXA US: +0.05%) with crypto mining company PrimeBlock. 5) No SPAC launched last week in the U.S.
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