The IPOX® Week - December 11, 2023

IPOX® PORTFOLIO STOCKS IN FOCUS: The IPOX® 100 U.S. (ETF: FPX) outperformed on the gains of two of its largest holdings: Uber Technologies (UBER US: +7.59%) surged after news that the ride-hailing app is being added to the S&P 500 benchmark. Best-in-class climate solutions provider Carrier Global (CARR US: +3.85%), 4th largest holding in our index, gained on plans to focus on its air conditioning business after technology conglomerate Honeywell plans to buy Carrier’s home security unit for $4.95 billion. Software development platform GitLab (GTLB US: +12.83%) led the index after reporting a 32% growth in revenue. Customer experience management SaaS business Sprinklr (CXM US: -31.09%) plunged despite beating revenue expectations as management issued guidance on growth deceleration. The IPOX® International (ETF: FPXI) was led SK IE Technology (361610 KS: +25.91%) and large-cap holding Ecopro BM (247540 KS: +11.76%) as South Korean battery firms experience a resurgence after short-selling was banned in the country. In the IPOX® Europe (ETF: FPXE), Swiss pharma firm Pharvaris (PHVS US: +36.74%) soared on positive clinical trial data, while recent mega-IPO chip designer Arm (ARM US: +5.21%) gained amid strong results for Qualcomm’s new high-end Arm-based chip, which beats Apple’s M2 chip in performance and attracts a growing number of PC makers to replace AMD/Intel chips.

IPO MARKET REVIEW AND OUTLOOK: 7 sizable firms started trading across the global equity universe tracked by IPOX® last week with the average (median) equally-weighted deal adding +7.69% (-2.93%) based on the difference between the respective final offering price and Friday’s close. Amid continuing deal flow in the Middle East, the largest IPO last week was Abu Dhabi crypto mining firm Phoenix Group (PHX UH: +50.00%), which raised $370 million in the first crypto firm to debut in the region. Dubai state-owned taxi operator Dubai Taxi Co (DTC UH) gained +18.92% after raising $315 million on high investor appetite, being 130-times oversubscribed.

As the IPO pipeline is winding down ahead of the holidays, only 3 firms are expected to list next week, the largest being Polish real estate developer Murapol (MUR PW) on Friday. Planning to raise $125 million, the listing ends a two-year drought on the Warsaw exchange. Battery materials firm LS Materials (417200 KS, $65m offer) will debut in Seoul on Tuesday, aiming to capitalize on the boom in South Korean EV stocks,. The firm’s parent LS Group was spun-off from electronics conglomerate LG in 2003 and continues to be controlled by LG’s founding Koo family. For more information about upcoming and recent listings visit the IPOX® IPO Calendar.

THE IPOX® SPAC (SPAC): The Index of 50 constituents trading at both the pre- and post-consummation stage fell -0.11% to +17.84% YTD. IPOX® Swiss biopharmaceutical company MoonLake Immunotherapeutics (MLTX US: +20.17%) gained most, as rumors on takeover interest resurfaced. Warehouse automation company Symbotic (SYM US: -11.28%) fell on profit taking. Other SPAC news from last week: 1) 4 SPACs Announced Merger Agreement include Zalatoris II Acquisition (ZLS US: +0.28%) with European modular construction company Eco Modular. 2) 4 SPACs Approved Business Combinations include 10X Capital Venture Acquisition II completed merger with African Alfalfa farm African Agriculture (AAGR US: -75.56%). 3) At least 4 SPACs announced to liquidate. 4) 1 new SPAC launched last week in the U.S.