The IPOX® Week
Headlines:
- IPOX® 100 U.S. (ETF: FPX) outperforms Nasdaq 100 by 95 bps., lags S&P 500.
- IPOX® Europe (ETF: FPXE) outperforms amid strong value performance.
- IPOX® SPAC (SPAC) gains +0.33%. Two U.S. SPACs launched last week.
- Several IPOX® holdings at post-IPO high. High deal flow in Asia and MENA.
WEEKLY IPOX® PERFORMANCE REVIEW: Amid the tug-of-war between bonds and equities, decreasing volatility (VIX: -7.74%) and new inflation data, the IPOX® Indexes traded mixed in post futures & option expiration week. In the U.S., e.g., the growth-focused IPOX® 100 U.S. (ETF: FPX) declined by -1.37% to -35.42% YTD, lagging the S&P 500 (ETF: SPY), benchmark for U.S. stocks. Still, our main U.S. index outperformed the Nasdaq 100 (ETF: QQQ) by +95 bps., as short-selling weighed on growth stocks such as Tesla (TSLA US: -18.03%) amid rising interest rates. Internationally, we noted relative strength in the IPOX® Europe (ETF: FPXE), which gained slightly (+0.08% to -35.73% YTD) as the strong performance of value stocks propped up the index. Despite a rebound in the IPOX® China (CNI: +1.16%), the IPOX® International (ETF: FPXI) declined by -0.24% to -32.30% YTD. Here, we noticed weakness in our Japanese holdings, as the IPOX® Japan (IPJP: -6.45%) fell amid a strengthening Yen after the BoJ’s decision to raise rates. Despite this, our index outperformed the Tokyo Stock Exchange’s innovation-focused TSE Mothers Index (TSEMOTHR) by +227 bps. last week. Ahead of the strongly awaited IPO of Aramco unit Luberef, the IPOX® MENA (IPEV: -1.49%) fell amid end-of-year profit taking.
IPOX® PORTFOLIO HOLDINGS IN FOCUS: The IPOX® 100 U.S. (ETF: FPX) was led by neuroscience-focused biotech firm Cerevel Therapeutics (CERE US: +21.26%), which surged after announcing positive results for a schizophrenia drug. Amid an increase in commodity prices last week, oil and gas firms Profrac Holding (ACDC US: +16.08%) and Highpeak Energy (HPK US: +10.33%) gained. EV firm Rivian (RIVN US: -14.86%) dropped after being caught in the crossfire amid short-selling of rival Tesla. In the IPOX® Europe (ETF: FPXE), Spanish savings bank Unicaja Banco (UNI SQ: +10.83%) topped the index after news that it will replace soon-to-be delisted Siemens Gamesa in Spain’s benchmark index IBEX 35. Swedish renewable energy firm OX2 (OX2 SS: +8.04%) gained after winning a contract to construct one of the largest solar farms in Central and Eastern Europe. British cross-border transaction fintech Wise (WISE LN: -9.75%) dropped after news that the company would start to offer interest-yielding savings accounts. The IPOX® International (ETF: FPXI) was headed by education firm Koolearn Technology (1797 HK: +29.76%) which joined the index in our December rebalancing and ended the week on a new post-IPO high, alongside several other IPOX® Holdings, e.g. GSK consumer healthcare spin-off Haleon (HLN LN: +3.63%), Danish pharma giant Novo Nordisk (NVO US: +0.73%), Thai retailer Centrail (CRC TB: +4.00%), U.S. insurer Arch Capital (ACGL US: +3.85%), Chinese retailer China Tourism Duty Free (1880 HK: +3.81%), Norwegian logistics firm Höegh Autoliners (HAUTO NO: +5.55%).
GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: 10 sizable listings started trading globally last week, gaining on average +16.45% based on the difference between the final offer price and Friday’s close. The largest new listing this week was Saudi communication cables maker Riyadh Cables (RIYADHCA AB: -9.19%), which raised $378m, followed by the $187m IPO of Turkish natural gas distributor Ahlatci Dogal (AHGAZ TI: +20.98%). Gaining listings included Japanese food producer St Cousair (2937 JP: +55.50%), Thai sports apparel maker Warrix Sports (WARRIX TB: +17.46%), Thai retailer Moshi Moshi (MOSHI TB: +77.38%), South Korean veterinary diagnostics firm BioNote (377740 KS: +12.78%) and Hong Kong medical devices maker Orbusneich (6929 HK: +3.98%). Japanese medical software maker GENOVA (9341 JP: -3.50%), Saudi plastics maker Saudi Top (SAUDITOP AB: -10.68%) and Chinese cosmetics firm Chicmax (2145 HK: -0.20%) all fell.
This week, at least 4 firms are expected to go public internationally. Wednesday: Swiss GDR sale of Chinese polyester textiles maker Jiangsu Eastern Shenghong (DFSH SW, $718M offer). Thursday: Hong Kong film and music rightsholder Star CM Holdings (6698 HK, $67M offer). Friday: AustAsia (2425 HK, $27M), dairy subsidiary of Indonesian agri-food firm Japfa and Chinese cryotherapy specialist Cryofocus Medtech (6922 HK: $26M).
OTHER NEWS: 1) $1.3 billion IPO of Saudi Aramco unit Luberef with 230% oversubscription, trading date to be announced. 2) Canadian asset management firm CI Financial (CIX CN) files confidentially for IPO of $134 billion U.S. unit. 3) Chinese Domino’s Pizza franchinsee DPC Dash postpones Hong Kong IPO due to market conditions. 4) Solar panel maker Longi Green Energy to raise $4 billion in super-sized Swiss GDR sale. 5) Web hosting arm of German internet giant United Internet eyes €5 billion valuation in 2023 IPO.
THE IPOX® SPAC (SPAC): The Index, currently composed of a selected 50 high conviction plays trading at both the pre- and post-consummation stage, added +0.33% last week to -24.76% YTD. IPOX® SPAC Leaders recording upside/downside moves last week include latest addition biopharmaceutical company Alvotech (ALVO US: +29.87%) as FDA closer to approve its biosimilar to AbbVie’s Humira while chronic kidney disease-focused biotech ProKidney (PROK US: -18.37%) continued to drop. Other SPAC news from last week: 1) 4 SPACs Announced Merger Agreement include 10X Capital Venture Acquisition III (VCXB US: -2.63%) with electrical Infrastructure maintenance and recovery services provider Sparks Energy. 2) 2 SPACs Approved or Completed Business Combination include Crescent Cove Acquisition with Geely-backed automotive software and hardware developer tech start-up Ecarx (ECX US: -21.02%). 3) 2 SPACs terminated merger agreements include a) Aries I Acquisition (RAM US: +0.64%) and metaverse infrastructure firm Infinite Assets and b) ex-NYSE president’s SPAC Far Peak Acquisition (FPAC US: +0.40%) with cryptocurrency platform Bullish. 4) Another massive 19 SPACs announced liquidation. 5) 2 new SPACs launched last week in the U.S.
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