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 another week of earnings and more IPO M&A, top of the list in the IPOX® 100 U.S. (ETF: FPX) ranked de-SPAC energy explorer TX-based HighPeak Energy (HPK US: +24.49%), followed by Lithium compounds producer Livent (LTHM US: +15.12%) and physician-enablement firm Privia Health Group (PRVA US: +6.91%). Companies ranking at the bottom of the weekly performance ranking here included communications technology provider Zoom Video (ZM US: -18.18%), computer hardware maker Dell (DELL US: -13.09%) and crypto currency exchange operator Coinbase (COIN US: -9.88%). Stand-outs amongst our non-U.S. domiciled portfolio holdings tracked in the IPOX® International (ETF: FPXI) and IPOX® 100 Europe (ETF: FPXE) last week included Norway energy firms micro-cap Okea (OKEA NO: +21.80%) and Var Energi (VAR NO: +13.08%), as well as China-domiciled online recruitment services provider Kanzhun (BZ US: +15.11%) and Netherlands-based leading energy equipment maker Alfen Beheer (ALFEN NA: +12.29%).
GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: 4 sizeable IPOs launched last week, with the average equally weighted deal gaining +68.57% based on the difference between the final offering price and Friday’s close. The deals included South Korean car-sharing service SOCAR (403550 KS: -2.32%), Chinese real estate management services firm Suxin Joyful Life Services (2152 HK: -2.44%) and the $2bn offer of duty free travel retailer China Tourism Group Duty Free (1880 HK: +4.05%). On Friday, the IPO of Chinese education content provider Jianzhi Education Technology (JZ US: +275.00%), which was managed by recently surging AMTD, continued the trend of extraordinarily underpriced U.S.-listed Chinese IPOs. Among smaller offerings last week, Tuesday’s IPO of Malaysian payment solution provider Starbox (STBX US: +33.00%) stood out for surging massively over +1000% above its IPO price, before falling towards the end of the week.
This week, one sizable IPO is expected to launch internationally.
Chinese developer of pre-clinical cancer treatments, Biocytogen Pharmaceuticals Beijing Co Ltd (2315 HK: $70m offer) is expected to list on Thursday.
Other news include: 1) IPOX® 100 U.S. (ETF: FPX) and IPOX® 100 Europe (ETF: FPXE) member, Alcon (ALC SW) to extend eye treatment portfolio by acquiring Aerie Pharmaceuticals (AERI US) for $770m. 2) IPOX® 100 Europe (ETF: FPXE) holding Andritz (ANDR AV) to purchase private Italian battery maker Sovema. 3) Amazon extends health care buying spree by bidding for 02/2021 IPO Signify Health (SGFY US). 4) Novartis (NOVN SW) to list generics unit Sandoz by Q2 2023. 5) Dubai privatizations continue as Emirates Central Cooling Systems (Empower) picks U.S. banks for IPO. 6) Chinese EV maker Leapmotor gets approval for $1.5bn H.K IPO. 7) Chinese nickel producer Lygend aims to raise $1bn in H.K. as soon as next month 8) Music Tribe, Audio maker for U2 and AC/DC plans IPO at $2bn valuation. 9) Bausch Health (BHC US) faces $3bn securities fraud lawsuit, which might affect recent spin-off Bausch + Lomb (BLCO US), yet shares of the IPOX 100 U.S. (ETF: FPX) portfolio holding have remained unfazed, gaining +8.20% month-to-date. 10) Porsche has lined up IPO investors at a valuation of as much as $85bn, paving the way for a blockbuster Q4 deal which is set to re-open the Global (European) IPO market.
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 -0.19% to -13.65% YTD. IPOX® SPAC Leaders recording big upside/downside moves last week include lithium-on batteries maker Enovix (ENVX US: +18.10%), while media content marketplace Getty Images (GETY US: -8.06%) fell. Other SPAC news from last week: 1) 3 SPACs Announced Merger Agreement include GSR II Meteora (GSRM US: +0.30%) with bitcoin payment company Bitcoin Depot. 2) 2 SPACs Approved Business Combination include Riverview Acquisition (RVAC US: +11.28%) with coffee and tea provider Westrock Coffee (WEST US: 08/29). 3) 2 SPACs opted to liquidate include a) Isleworth Healthcare Acquisition (ISLE US; ±0.00%) at $10.01/share and b) E.Merge Technology Acquisition (ETAC US: ±0.00%) at $10.06/share. 4) No SPAC launched last week in the U.S.
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