The IPOX® Week - February 21, 2023
Headlines:
- IPOX® 100 U.S. (ETF: FPX) gains +1.06% last week as earnings trump rates.
- IPOX® MENA Index leads as multiple IPOX® Holdings reach post-IPO highs.
- IPOX® SPAC (SPAC) rises +1.22%. 2 U.S. SPACs launched last week.
- Pertamina Geothermal Energy set to revive South East Asian IPO market.
WEEKLY IPOX® PERFORMANCE REVIEW: After last week’s hawkish FED signaling amid fresh U.S. inflation numbers, U.S. short-term bond yields surpassed 5% for the first time since 2007, shifting the yield curve higher for the 4th week. While U.S. equities finished the week slightly lower, most IPOX® Indexes gained and continued to outperform key benchmarks. In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX) climbed +1.06% to +8.75% YTD, taking +59 bps. from the Nasdaq 100 (ETF: QQQ, +0.43%), extending its YTD lead vs. the S&P 500 (SPX, -0.28%) to +226 bps. Internationally, continued Momentum drove select IPOX® Indexes further vs. benchmarks: As during the prior week, the IPOX® Europe (ETF: FPXE, +1.25%) took +24 bps. from the STOXX Europe 50, while our Scandinavia-focused IPOX® Nordic (IPND: +1.23%) closed +15 bps. higher when compared to the MSCI Nordic. The IPOX® International (ETF: FPXI, -0.31%) fell marginally, as weaker performance in the IPOX® China (CNI: -1.38%) was absorbed by a surge in the Middle East-focused IPOX® MENA (IPEV: +2.00%), fueled by several holdings reaching a new post-IPO high, e.g., hospital operator Dr Sulaiman Al Habib (SULAIMAN AB: +7.43%), IT services provider Elm Co (ELM AB: +4.83%) and oil & gas firm Arabian Drilling (ARABIAND AB: +6.13%). The IPOX® Japan (IPJP: -0.38%) weakened, albeit not as much as the comparable TSE Mothers Index (TSEMOTHR: -1.89%). Furthermore, the super-liquid large cap focused IPOX® Growth Infusion (GNDX) gained +0.69% to edge ahead of the S&P 500 YTD, extending its lead to a massive +1194 bps. since live launch (see below).
IPOX® PORTFOLIO STOCKS IN FOCUS: The IPOX® 100 U.S. (ETF: FPX) was led by rental marketplace Airbnb (ABNB US: +20.88%), which rose strongly after earnings. Eye health spin-off Bausch + Lomb (BLCO US: +13.85%) climbed amid news of former CEO Saunders returning to his post, while electric cable supplier Credo (CRDU US: -48.19%) plunged after earnings. In the IPOX® Europe (ETF: FPXE), French glass maker Verallia (VRLA FP: +14.52%) surged to a new high after reporting a 25% revenue growth. Swedish property platform Hemnet (HEM SS: +10.05%) recovered on news of improving sentiment in the country’s housing market, while British biopharma Bicycle Therapeutics (BCYC US: -10.09%) fell amid new clinical trial data. IPOX® International (ETF: FPXI) leaders included the aforementioned Saudi-traded firms as well as Swedish online wealth manager Nordnet (SAVE SS: +5.98%), which reached a 52-week high. Other holdings reaching new post-IPO highs last week include, e.g., life insurance firm Jackson Financial (JXN US: +7.90%), energy storage firm WillScot (WSC US: +2.33%), biotech Prometheus Biosciences (RXDX US: +5.79%), insurance firm Arch Capital (ACGL US: +5.59%), protein supplement maker Bellring (BRBR US: +2.35%), chipmaker Allegro Microsystems (ALGM US: +4.14%), recent spin-off GE Healthcare (GEHC US: +5.68%), British GSK consumer health spin-off Haleon (HLN LN: +1.85%), Norwegian oil tanker operator Hafnia (HAFNI NO: +6.54%), Swiss ship engine part-maker Accelleron (ACLN SW: +4.66%), Danish pharma giant IPO M&A Novo Nordisk (NOVOB DC: +1.82%), Italian hydrogen firm De Nora (DNR IM: +5.80%), German defense contractor Hensoldt (HAG GR: +6.10%) and Belgian car glass repairer D’Ieteren (DIE BB: +5.15%).
GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: 4 large IPOs started trading last week, adding +47.81% on average, based on the difference between the final offer price and Friday’s close. MEB Corp (MEB TB: +46.49%), e-book unit of Thailand’s largest retailer Central Retail and food ingredient firm Premier Quality Starch (PQS TB: -15.83%) started trading in Bangkok. South Korean battery materials maker Jeio (418550 KS: +69.62%) surged after cutting their offer size by 37% compared to last year’s IPO attempt. 3 sizable offers are expected to trade this week. Wednesday: Battery Firm Zhejiang HangKe Technology (ZHT SW, $172m Swiss GDR offer), Thursday: Brazilian oil & gas firm Seacrest Petroleo (SEAPT NO, $245m), Friday: Pertamina Geothermal Energy (PGEO IJ, $611m), the largest IPO since super app GoTo (02/22) is set to re-open the Indonesian market.
Other IPO News: 1) Abu Dhabi’s Adnoc Gas aims for $50b valuation in March IPO. 2) Indonesian courier firm J&T Express plans to raise $2b in Hong Kong IPO for $20b valuation. 3) Swedish battery maker Northvolt plans IPO at $20b valuation within a year. 4) Apollo-backed German lender Oldenburgische Landesbank (OLB) picks banks for May IPO at +$1b valuation. 5) Chinese battery firm REPT plans to raise $1b in Hong Kong IPO, would be largest offer on HKEX since October 2022. 6) Social media platform Reddit plans IPO in H2 2023.
THE IPOX® SPAC (SPAC): The Index, composed of 50 high conviction plays at both the pre- and post-consummation stage added +1.38% to +5.44% YTD. IPOX® SPAC Index Movers included Switzerland-based biotechnology company MoonLake Immunotherapeutics (MLTX US: +21.45%), which continued to soar on new analyst coverage, while mobile recycling firm PureCycle Technologies (PCT US: -11.28%) plunged. Other SPAC news from last week: 1) 7 SPACs Announced Merger Agreement include Vehanna Tech Edge Acquisition I (VHNA US: 0.00%) with AI-driven insur-tech Roadzen. 2) 2 SPACs Approved Business Combination include Legato Merger II with 120-year-old specialized infrastructure construction company Southland Holdings (SLND US: -17.74%). 3) 8 SPACs announced or commenced liquidation. 4) 2 new SPACs launched last week in the U.S.
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Lightspeed Financial Services Group LLC is not affiliated with these third-party market commentators/educators or service providers. Data, information, and material (“Content”) are provided for informational and educational purposes only. This content neither is, nor should be construed as an offer, solicitation, or recommendation to buy or sell any securities or contracts. Any investment decisions made by the user through the use of such content are solely based on the user's independent analysis taking into consideration your financial circumstances, investment objectives, and risk tolerance. Lightspeed Financial Services Group LLC does not endorse, offer or recommend any of the services or commentary provided by any of the market commentators/educators or service providers, and any information used to execute any trading strategies are solely based on the independent analysis of the user.
