The IPOX® Week
Headlines:
- Most IPOX® Indexes traded lower last week, IPOX® 100 U.S. sheds -4.33%.
- IPOX® Europe (ETF: FPXE) ends 7-week winning streak, loses -0.79%.
- IPOX® SPAC (SPAC) drops -3.54%. No U.S. SPACs launched last week.
- IPOX® holding Porsche enters Germany’s DAX 40. 12 IPOs this week.
WEEKLY IPOX® PERFORMANCE REVIEW: Amid big swings in U.S. yields amid recession fears, Friday’s discouraging U.S. Producer Price Index and increased U.S. equity risk (VIX: +19.78%), the IPOX® Indexes traded lower ahead of futures expirations week. In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX) declined by -4.33% to -32.68% YTD, outpacing U.S. small-caps, while lagging the S&P 500 (ETF: SPY), benchmark for U.S. stocks. Internationally, the IPOX® International (ETF: FPXI) declined by -0.49% to -31.16%. Again, widely dispersed gains throughout the index’s portfolio were characterized by another big jump in China-linked exposure, with big gains in the IPOX® China (CNI: +4.80%) amid a reversal in the country’s zero-COVID policy. In other international markets, the IPOX® Europe (ETF: FPXE) fell -0.79%, ending its record-breaking week-on-week rally after gaining +20.13% in 7 weeks. With the FIFA World Cup in Qatar entering its final week, the IPOX® MENA (IPEV: -4.35%) dropped sharply on big stock overhang. The IPOX® Japan (IPJP: +0.05%) gained marginally as two large IPOs are expected to list in Tokyo this week.
IPOX® PORTFOLIO HOLDINGS IN FOCUS: The IPOX® 100 U.S. (ETF: FPX) was led by biotech firm Prometheus Biosciences (RXDX US: +175.50%), which surged after announcing new Phase 2 trial data for a new Inflammatory Bowel Disease (IBD) drug. Both cloud-based development platform Gitlab (GTLB US: +12.36%) and leisure cloth firm Academy Sports & Outdoors (ASO US: +9.07%) also gained after beating earnings estimates. The index’s laggards were led by neuroscience biotech Karuna Therapeutics (KRTX US: -16.70%) amid a leadership shake up, while beleaguered crypto exchange Coinbase (COIN US: -15.59%) fell to a new post-IPO low. Outsized moves in the IPOX® Europe (ETF: FPXE) were recorded by car part maker Vitesco (VTSC GR: +8.16%) and GSK Consumer Healthcare spin-off Haleon (HLN LN: +7.94%), which surged after the Illinois-filed lawsuit surrounding the antacid drug Zantac was dismissed. With positive reopening news out of China, returns across the IPOX® International (ETF: FPXI) were again widely spread and included Chinese social media platform Kuaishou (1024 HK: +16.83%) and travel retailer China Tourism Duty Free (1880 HK: +9.44%). Indonesian super-app GoTo (GOTO IJ: -29.55%) continued to fall steeply amid analyst reports of a looming cash crunch.
IPOX® PORTFOLIO HOLDING NEWS: 1) IPOX® Europe (ETF: FPXE) and IPOX® International (ETF: FPXI) constituent, luxury car maker Porsche (P911 GR: -5.23%) set to enter German DAX 40 benchmark on December 16. 2) Healthcare provider UnitedHealth’s (UNH US: +0.57%) purchase of rival LHC Group (LHCG US) expected to close in Q1 2023. 3) Tech investor Softbank (9434 JP: +0.95%) CEO Masayoshi Son increases stake, fuels rumors mill of plans to take firm private in the future. 4) IPOX® Europe (ETF: FPXE) holding, Swedish private equity firm EQT (EQT SS: +0.83%) eyes Morgan Stanley’s 40% stake in German wind park developer PNE (PNE3 GR).
GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK:4 sizable IPOs started trading globally last week, gaining on average +6.04% based on the difference between the final offer price and Friday’s close. Italian hydrogen firm Erredue (RDUE IM: +1.25%) and Swedish wireless communication firm LumenRadio (LUMEN SS, +26.05%) gained. Chinese insurance firm Sunshine Insurance (6963 HK, +0.00%) traded flat, while Thai pet food maker i-Tail (ITC TB: -3.13%) fell. In the U.S., micro-cap lab-grown diamond maker Adamas One (JEWL US: +18.44%) gained after pricing their IPO for a $11m offer size, down from the initially planned $34m.
This week, at least 12 firms are expected to go public internationally:
OTHER NEWS: 1) Vietnamese EV firm Vinfast files for U.S. IPO. 2) Aramco refiner Luberef prices $1.3B IPO at top end of range. 3) Xiamen International Bank mulls $1.3B H.K. IPO. 4) Anta Sports weighs IPO of Finland’s Wilson tennis racket maker Amer, could raise over $1B.
THE IPOX® SPAC (SPAC): The Index fell -3.54% to -23.71% YTD. IPOX® SPAC Leaders included workforce accommodations provider Target Hospitality (TH US: +1.74%) and broadband network firm AST SpaceMobile (ASTS US: -26.63%). Other SPAC news: 1) 9 SPACS Announced Merger Agreement include a) Ares Acquisition (AAC US: +0.30%) with nuclear power firm X-energy and b) Golden Falcon Acquisition (GFX US: +0.10%) with Turkish air freight carrier MGN Airline. 2) 1 SPAC Approved and Completed Business Combination include InterPrivate II Acquisition with car sharing platform Getaround (GETR US: -66.11%). 3) 3 SPACs terminated merger include a) the $9bn deal between Concord Acquisition (CND US: +0.00%) and stablecoin issuer Circle and b) the $1bn deal between Gores Holdings VIII (GIIX US: +0.50%) and plant-based fiber packaging firm Footprint. 4) 15 SPACs announced liquidation and redemption. 5) No new SPAC launched last week.
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