The IPOX® Week - February 27, 2023
Headlines:
- IPOX® 100 U.S. (ETF: FPX) outperforms S&P 500 for 4th straight week.
- IPOX® MENA shows relative strength anew, beats peer index by 458 bps
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- IPOX® SPAC (SPAC) drops -1.91%. No U.S. SPACs launched last week.
- Pertamina Geothermal launches flat, Adnoc Gas $2b IPO debuts 3/13.
WEEKLY IPOX® PERFORMANCE REVIEW: U.S. equities ended the shortened trading week lower after the PCE index, preferred inflation gauge for the U.S. Federal Reserve, rose above economists’ expectations. As continued momentum drove U.S. treasury yields to new gains for the 5th week, equities lost the tug-of-war against bonds. As a result, the IPOX® Indexes closed in the red on Friday, albeit with relative strength over key benchmarks. In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX) fell -2.25% to +6.31% YTD, taking +92 bps. from the tech-heavy Nasdaq 100 (ETF: QQQ) and +47 bps. from the S&P 500 (ETF: SPY), benchmark for U.S. equities. As the Ukraine-Russia war marked its first anniversary, political tensions continued to fuel the reversal in the IPOX® China (CNI: -4.08%), putting the IPOX® International (ETF: FPXI, -4.01%) under renewed pressure. In the EMEA region, the IPOX® Europe (ETF: FPXE) fell -3.03% to +5.09% YTD, while the IPOX® MENA (IPEV: -1.87%) dropped amid profit taking after several key holdings reached post-IPO highs the week prior. Still, our Middle East-focused index remains comparatively strong, beating the weaker Dow Jones MENA Index (DJMENA) by +80 bps. to a massive outperformance of +458 bps. YTD.
IPOX® PORTFOLIO STOCKS IN FOCUS: The IPOX® 100 U.S. (ETF: FPX) was led by transplantation medicine specialist TransMedics (TMDX US: +18.93%), which rose to a new post-IPO high after earnings. Data infrastructure firm Credo Technology (CRDO US: +8.91%) bounced back after profit warnings in the week before. Recent car sensor spin-off Mobileye (MBLY US: -13.83%) slid after parent Intel was reported to cover their debt by reducing their $30b stake in the autonomous driving firm. Neuroscience biotech Cerevel Therapeutics (CERE US: -24.46%) dropped sharply after announcing their president’s departure as well as Covid-related drug trial delays. The IPOX® Europe (ETF: FPXE) was also led lower by biotech firms, as Immunocore (IMCR US: -12.21%) and Bicycle Therapeutics (BCYC US: -9.73%) fell on recent clinical data. Belgian oil tanker Euronav (EURN BB: +9.90%) led the index, while German defense firm Hensoldt (HAG GR: +6.27%), supplier of air defense radars to Ukraine, reached a new post-IPO high for a second week. The IPOX® International (ETF: FPXI) was led by Australian lottery operator The Lottery Corporation (TLC AT: +7.00%), which rose to a new high after announcing a maiden dividend. Global laggards disproportionately included Chinese firms, e.g., video sharing platform Kuaishou (1024 HK: -13.00%). Other IPOX® Holdings reaching new post-IPO highs this week included Danish pharma giant Novo Nordisk (NOVOB DC: +1.13%), Austrian hydropower equipment maker Andritz (ANDR AV: +2.22%), medical imaging specialist GE Healthcare (GEHC US: +2.51%) and tanker firm Hafnia (HAFNI NO: +3.62%).
GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: 4 large IPOs started trading last week, adding +1.40% on average, based on the difference between the final offer price and Friday’s close. Debt collector Chase Asia (CHASE TB: +5.52%) started trading in Bangkok. Chinese battery test equipment maker Zhejiang HangKe Technology (ZHT SW: +0.07%) launched a secondary listing in Switzerland. Brazilian oil & gas firm Seacrest Petroleo (SEAPT NO: +0.00%) and Indonesian energy firm Pertamina Geothermal (PGEO IJ: +0.00%) traded flat on their debut. Indonesian mining contractor Hillcon (HILL IJ, $36m offer) is expected to launch Wednesday, the only sizable offer to start trading next week.
Other IPO News: 1) KKR-backed BMC Software files for U.S. IPO, expects $15b valuation. 2) Indonesia’s palm oil producer PalmCo, gold miner Amman among firms planning to raise +$3b in 2023. 3) Chinese fintech East Money Information plans $1b listing in Zurich. 4) Several IPOX® International (ETF: FPXI) members are tipped to join Hang Seng Index. 5) Abu Dhabi’s Adnoc Gas $2b offer covered within hours, trading starts March 13. 6) Agriculture firm Olam Agri picks banks for $1b Singapore/Riyadh dual listing. 7) Philippine KKR-backed Metro Pacific Hospital revives $1b IPO, largest in the country since 2021.
THE IPOX® SPAC (SPAC): The Index of 50 high conviction plays at both the pre- and post-consummation stage slid -1.91% to +3.43% YTD. IPOX® SPAC movers include Mexican and the Caribbean all-inclusive oceanfront resorts operator Playa Hotels & Resorts (PLYA US: +12.03%) surged on revenue beats and increased shares repurchase. Pfizer spin-out neuroscience biopharmaceutical company Cerevel Therapeutics (CERE US: -24.46%) fell on delayed clinical trials. Other SPAC news from last week: 1) 2 SPACs Announced Merger Agreement include Marblegate Acquisition I (GATE US: -0.40%) with Chicago, Philadelphia, Newark, and New York City taxi medallion loan holder DePalma. 2) 2 SPACs Approved Business Combination include Decarbonization Plus Acquisition IV (DCRD US: +48.48%) with Canadian oil and gas E&P company Hammerhead Resources (HHRS: expected dual listings on NASDAQ & TSX on 2/27). 3) 8 SPACs announced or commenced liquidation. 4) No SPAC 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.
