The IPOX® Week
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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