The IPOX® Week
Headlines:
- IPOX® Indexes trade lower in futures expirations week, IPOX® 100 U.S. -2.75%.
- IPOX® Growth Infusion (GNDX) takes +72 bps. from S&P 500 benchmark.
- IPOX® SPAC (SPAC) drops -1.70%. No U.S. SPACs launched last week.
- 14 sizable IPOs launched last week. Two IPOX® holdings join Nasdaq 100
WEEKLY IPOX® PERFORMANCE REVIEW: As the year’s final futures and options expirations week came to a close, U.S. stocks dropped on concerns that continued aggressive tightening would cause a recession. Amid Friday’s data on contracting U.S. business activity, the IPOX® Indexes traded lower. In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX) declined by -2.75% to -34.53% YTD, lagging the S&P 500 (ETF: SPY), benchmark for U.S. stocks. Internationally, the IPOX® International (ETF: FPXI) declined by -1.43% to -32.14% amid reports that the boost to China’s economy from ending their Zero-COVID policy is fading. As activity in the country shows a slowdown while infections surge nationwide, the IPOX® China (CNI: -1.39%) fell. In other international markets, the IPOX® Europe (ETF: FPXE) declined by -1.10% to -35.78% as the European Central Bank announced further rate hikes. With the FIFA World Cup to conclude in Qatar, the IPOX® MENA (IPEV: +1.58%) gained as Americana Restaurants, Saudi Arabia’s largest IPO this year, launched. In IPO M&A action, the super-liquid IPOX® Growth Infusion (GNDX) fell -1.36%, taking +72 bps. from the S&P 500 to a +716 bps. of outperformance YTD.
IPOX® PORTFOLIO HOLDINGS IN FOCUS: The IPOX® 100 U.S. (ETF: FPX) was led by solar firm Shoals Technologies (SHLS US: +12.22%). Social media site Pinterest (PINS US: +7.33%) gained after upgraded analyst price targets. Language app Duolingo (DUOL US: +6.29%) gained as an inside institutional shareholder increased their holding. On-demand manufacturer Xometry (XMTR US: -18.57%) fell as analysts expect a revenue slowdown. Amid reports that a planned collaboration with German car maker Mercedes would be dropped, EV maker Rivian (RIVN US: -17.63%) fell despite news that the firm would enter the Nasdaq 100, alongside IPOX® holding, semiconductor firm GlobalFoundries (GFS US: -5.35%). Movers in the IPOX® Europe (ETF: FPXE) included self-storage firm Shurgard (SHUR BB: +10.25%) and wind energy firm OX2 (OX2 SS: +7.69%), while retailer Watches of Switzerland (WOSG LN: -10.56%) fell after earnings. The IPOX® International (ETF: FPXI) was led by the exchange Saudi Tadawul (TADAWULG AB: +16.64%), as well as several firms listed on the country’s main market, e.g. electricity supplier ACWA (ACWA AB: +12.71%) and public investment fund-owned Elm (ELM AB: +7.17%). EV charger maker Alfen (ALFEN NA: -8.91%) declined alongside other firms in the car industry, e.g. premium car maker Porsche (P911 GR: -7.65%).
GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: 14 sizable listings started trading globally last week, gaining on average +11.38% based on the difference between the final offer price and Friday’s close. MENA KFC operator Americana opened the week with a rare Saudi-UAE dual listing (AMR UH/AMERICAN AB: +20.23%). Deal flow was particularly active in Asia-Pacific where the following firms started trading: Hong Kong: Optical supplies firm Gaush Meditech (2407 HK: +0.10%), biotech 3D Medicines (1244 HK: +31.10%) and snack food maker Weilong (9985 HK: -13.35%). Thailand: Industrial REIT Hydrogen REIT (HYDROGEN TB: +1.00%), lender SG Capital (SGC TB: +28.97%), GPS fleet tracking firm DTC Enterprise (DTCENT TB: -20.28%). Japan: Budget airline Skymark (9204 JP: +18.63%), recycling firm Daiei Kankyo (9336 JP: +45.19%) and HR firm OpenWork (5139 JP: +33.33%), Malaysia: Traffic management firm ITMAX System (ITMAX MK: +28.21%). British cybersecurity firm Smarttech247 (S247 LN: +2.83%) started trading on London AIM, while Canada’s Brookfield Asset Management (BAM CN: -16.61%) started trading independently after spin-off from parent Brookfield Corp (BN CN). Hospitals firm Akdikal (AKT MC: 0.00%) raised $111M in a rare Morocco IPO.
This week, at least 6 firms are expected to go public internationally. Monday: Saudi communications firm Riyadh Cables (RIYADHCA AB: $378M offer). Tuesday: Hong Kong TV and Film rights owner Star CM (6698 HK: $67M offer). Wednesday: Japanese food producer St. Cousair (2937 JP: $33M offer). Thursday: Chinese cosmetics firm Chicmax (2145 HK: $142M offer). Friday: Japanese medical service provider Genova (9341 JP: $39M offer), Hong Kong medical device maker OrbusNeich (6929 HK: $62M offer). Also, H-Shares of U.S.-listed recruitment firm Kanzhun (BZ US) are expected to start trading in Hong Kong (2076 HK) on Dec. 22.
OTHER NEWS: 1) Biotech Amgen buys biotech Horizon Therapeutics (HZNP US) for $28B, firms largest acquisition yet. 2) Geely premium electric car brand Zeekr files confidentially for $1B+ U.S. IPO. 3) IPOX® International (ETF: FPXI) holding, Japanese big pharma firm Takeda buys rights to autoimmune disease drug for $4B from Nimbus Therapeutics (private). 4) Abu Dhabi National Oil picks banks for mega IPO of LNG unit next year. 5) IPOX® Europe (ETF: FPXE) holding, Swedish private equity investor EQT (EQT SS) submits offer for German insulation firm, 2016 IPO Va-Q-Tec (VQT GR). 6) GE healthcare unit to start trading on Nasdaq on Jan. 4 as GE Healthcare Technologies (GEHC US). 7) PE firm Advent to buy satellite operator Maxar (MAXR US for about $4B. .
THE IPOX® SPAC (SPAC): The Index fell -1.70% last week to -25.01% YTD. IPOX® SPAC Leaders recording notable moves included workforce accommodations provider Target Hospitality (TH US: +7.96%) and kidney disease-focused biotech ProKidney (PROK US: -23.44%). Other SPAC news from last week: 1) 9 SPACs Announced Merger Agreement include a) Rice Acquisition (RONI US: +0.29%) with clean natural gas producer NET Power and b) Newbury Street Acquisition (NBST US: +0.00%) with metaverse experience development firm Infinite Reality. 2) 2 SPACs Approved or Completed Business Combination include Primavera Capital Acquisition with Chinese conglomerate Fosun International owned French luxury Fashion group (LANV US: -0.20%). 3) Another 26 SPACs announced liquidation as the Inflation Reduction Act newly imposed 1% stock buyback tax continues to spur liquidations. 4) No new SPACs launched in the U.S. last week.
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Indexes continue outperformance of benchmarks amid global rout
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