The IPOX® Week - December 5, 2022

IPOX® PORTFOLIO HOLDINGS IN FOCUS: The IPOX® 100 U.S. (ETF: FPX) was led by dating app Bumble (BMBL US: +12.47%). We also saw high returns in the healthcare sector, including platform provider Agilon Health (AGL US: +8.82%), medical device maker Axonics (AXNX US: +7.06%) and software firm Alignment Healthcare (ALHC US: +6.97%). The index’s laggards were led by solar panel firm Shoals (SHLS US: -20.11%) after announcing a secondary offering. Outsized moves in the IPOX® Europe (ETF: FPXE) were recorded by vaccine firm BioNTech (BNTX GR: +9.62%), medical device maker Establishment Labs (ESTA US: +12.64%) and Tencent-backer Prosus (PRX NA: +7.08%), while Swedish wind energy firm OX2 (OX2 SS: -7.03%) fell. Returns across the IPOX® International (ETF: FPXI) were particularly widely dispersed and included Chinese restaurant chain Jiumaojiu (9922 HK: +36.70%), EV maker Li Auto (LI US: +35.51%) and social network Pinduoduo (PDD US: +31.32%). Desolate Indonesian super-app GoTo (GOTO IJ: -28.65%) fell amid more insider selling as the firm’s post-IPO lock up period expired.

IPOX® PORTFOLIO HOLDING NEWS: 1) Three IPOX® Holdings were announced to be added to the European STOXX 600 benchmark, i.e. car maker Porsche (P911 GR: +0.23%), glass maker Verallia (VRLA FP: +5.58%) and gas exploration firm Energean (ENOG LN: -4.48%), the latter of which fell after announcing the discounted offer of an institutional seller. 2) IPOX® 100 U.S. member Corteva (CTVA US: +1.48%) buys pesticide firm Stoller for $1.2b. 3) Pharma giant Eli Lilly (LLY US: +2.60%) completes acquisition of gene medicine firm, 2020 IPO Akouos. 4) IPOX® Europe constituent, Swedish PE firm EQT (EQT SS: -0.02%) in talks to acquire 2017 IPO, cell tower firm Radius Global Infrastructure (RADI US). 5) Investment firm Piper Sandler sees Coinbase (COIN US: +7.66%) price double amid opportunity to capitalize on bankruptcy of former rival FTX.

GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: 7 sizable IPOs started trading globally last week, gaining on average +23.38% based on the difference between the final offer price and Friday’s close. Taiwanese contact lens maker Visco Vision (6782 TT: +78.57%), Chinese lender 360 DigiTech (3660 HK: +22.73%), Thai jewelry maker Aurora Design (AURA TB: +36.70%), Thai property service firm Primo Service Solutions (PRI TB: +29.33%) and Finnish wood-processing firm Koskisen (KOSKI FH: +36.70%) all surged. The $595m IPO of Chinese nickel firm Lygend (2245 HK: +0.00%) traded flat, while UAE education firm Taaleem (TAALEEM UH: -10.67%) fell. image

At least 5 firms are expected to go public this week. Tuesday: Italian hydrogen firm Erredue (RDUE IM, $36m offer). Thursday: Swedish wireless communication firm LumenRadio (LUMEN SS, $26m offer). Friday: Chinese insurance firm Sunshine Insurance (6963 HK, $950m offer), Thai canned food maker Songkla Canning (ticker pending, $534m) and Thai pet food maker i-Tail (ITC TB, $594m).

Other news: 1) Thai retailer CJ Express mulls $800m IPO in Bangkok. 2) Indonesian Cinema XXI chain weighs $1.1b Jakarta IPO. 3) Energy distribution firm Growatt puts $1b Hong Kong IPO on hold. 4) San Francisco car-sharing service Turo to wait out market turmoil before IPO. 5) Samsung rumored to weigh semiconductor foundry spin-off. 6) German industrial engineering firm Thyssenkrupp in “no rush” for $600m spin-off IPO of hydrogen unit Nucera. 7) Japanese budget airline Skymark Airlines to re-enter Tokyo stock market in $235m listing on December 14. 8) Biotech M&A activity heats up: Amgen and Sanofi confirm possible takeover bid for Horizon Therapeutics (HZNP US), AstraZeneca buys Dutch cancer biotech Neogene Therapeutics (private), Boston Scientific buys Apollo Endosurgery (APEN US).

THE IPOX® SPAC (SPAC): The Index, currently composed of selected 50 high conviction plays trading at both pre- and post-consummation sage, added +0.46% to -20.91% YTD. IPOX® SPAC Leaders recording big moves included biopharma Immatics NV (IMTX US: +11.71%), while batter maker FREYR Battery (FREY US: -14.58%) fell following a massive upsized on secondary offering. Other SPAC news from last week: 1) 2 SPACs Announced Merger Agreement include Tribe Capital Growth I (IRAA US: +0.20%) with biotech Liminatus Pharma. 2) 2 SPACs Approved or Completed Business Combination include Pacifico Acquisition with carbon-neutral ocean technology and shipping company Caravelle (completion date to be determined). 3) Another wave of liquidation hit and affected 15 SPACs, including Hudson Executive Investment II and Hudson Executive Investment (HCII US: $10.10 /Share / HII US: $10.10). 4) No new SPACs launched last week in the U.S.