The IPOX® Week
Headlines:
- Ahead of big week for earnings, IPOX® 100 U.S. (ETF: FPX) adds +1.69%.
- IPOX® Europe (ETF: FPXE) outpaces European Market anew. China slumps.
- IPOX® SPAC (SPAC) adds +1.29%. 1 U.S. SPAC launched last week.
- IPO window opens globally as IONOS, NEXTracker, Mineralys line up.
WEEKLY IPOX® PERFORMANCE REVIEW: Amid mixed U.S. earnings, exuberant U.S. employment numbers driving a sharp reversal in U.S. rates and the U.S. dollar towards the week-end and big risk appetite driving technical buying of global equities through Thursday, the IPOX® Indexes finished higher last week. Ahead of a busy week for IPOX® earnings, in the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX) added +1.69% to +9.94% YTD, closing above the key 200-day moving average for the first time since March 2022 and slightly outpacing the S&P 500 (SPX), benchmark for U.S. stocks. We also note more strength for the IPOX® Europe (ETF: FPXE, +1.12%) and IPOX® Japan (IPJP: +2.91%) which both surged ahead of their respective benchmarks last week, while profit taking and increasing U.S./China political tensions weighted on the IPOX® China (CNI) and IPOX® International (ETF: FPXI), respectively. The IPO-M&A-focused defensively positioned IPOX® Growth Infusion (GNDX) added +1.30% to +7.66% YTD, +849 bps. ahead of the S&P 500 (SPX) Y/Y.
IPOX® PORTFOLIO STOCKS IN FOCUS: The IPOX® 100 U.S. (ETF: FPX) was led by biopharma company Vertex (VERX US: +20.50%), which rocketed as the European Medicines Agency validated an authorization application for two of their drugs. Self-driving car sensor maker Mobileye (MBLY US: +19.53%) surged after their well-received earnings report. Despite a beat in earnings, accounting software maker Bill.com (BILL US: -21.18%) fell sharply due to a weakened outlook. In the IPOX® Europe (ETF: FPXE), most upside focus was on French pharmaceutical ingredients firm EuroAPI (EAPI FP: +16.46%) amid positive news that production was restarted at their Budapest site following the discovery of manufacturing faults. British Forex fintech Wise (WISE LN: +14.64%) reversed the recent slump, while Spanish bank Unicaja Banco (UNI SM: -9.94%) fell after earnings. The IPOX® International (ETF: FPXI) saw losses in most of its China-linked portfolio holdings, including e-commerce firms Alibaba (BABA US: -10.18%) and Pinduoduo (PDD US: -8.63%), while German premium car maker Porsche (P911 GR: +8.00%) rose to a post-IPO high. U.S. pharma IPO M&A Regeneron (REGN US: +5.43%), French energy transition firm Technip Energies (TE FP: +1.80%), German automotive supplier Vitesco (VTSC GR: +3.62%), Saudi investment firm Elm (ELM AB: +6.86%) and Australian lottery operator Lottery Corp. (TLC AU: +4.70%) all reached new post-IPO highs towards Friday's close.
GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: 2 sizable IPOs started trading last week, adding +108.71% on average, based on the difference between the final offer price and Friday’s close. Diet-focused pharma firm upsized Structure Therapeutics (GPCR US: +73.33%) surged after listing in the U.S. on Friday, while car part maker Samkee EV (419050 KS: +144.09%) listed In South Korea. With the U.S. IPO window opening, the largest domestic deal of the week belongs to Solar energy equipment maker JP Morgan-led NEXTracker (NXT US, $500m offer) which is expected to trade Friday, together with clinical stage hypertension pharma firm Mineralys Therapeutics (MYLS US, $160m offer). The IPO of China-linked Hesai Group (HSAI, $171m offer), a provider of LiDAR products for autonomous vehicles and other applications, is imminent as pricing is expected Wednesday. Abroad, the IPO of German web-hosting firm IONOS (IOS GR, $590m offer) is the only sizable listing planned for this week. The firm targets a valuation of $3.4b with trading set to start Wednesday. Owners United Internet (UTDI GR) and private equity firm Warburg Pincus are each selling 15% of their stake and will keep around 60% and 10% of the company, respectively.
Other IPO News: 1) Oilfield services firm and frac sand miner Atlas Energy Solutions (AESI US) files for IPO. 2) Italy's electric motor firm EuroGroup aims for $1b market cap in $485m Milan IPO. 3) Australia-focused Constance Iron plans $72m IPO in London. 4) Greece selects BofA and Morgan Stanley for $1.1b IPO of Athens Airport, biggest IPO in the country since 2000. 5) Indonesian Pertamina Geothermal Energy kicks off $653m IPO. 6) Chinese battery firm CATL plans to sell GDRs worth $5 billion in Switzerland.
THE IPOX® SPAC (SPAC): The Index of 50 high conviction plays trading at both the pre- and post-consummation stage added +1.29% to +4.51% YTD. IPOX® SPAC Leaders recording upside/downside moves last week include facial treatment system provider Beauty Health (SKIN US: +12.47%) and workforce lodging and temporary modular housing company Target Hospitality (TH US: -6.81%). Other SPAC news: 1) 3 SPACs Announced Merger Agreement e.g., L Catterton Asia Acquisition C (LCAA US: +0.99%) with Singapore-based luxury EV maker Lotus Tech. 2) 2 SPACs Approved or Completed Business Combination include Pono Capital with Japanese flying motorbike ALI Technologies (AWIN US: TBA). 3) 7 SPACs announced or commenced liquidation. 4) 1 new SPAC launched last week in the U.S. 5) Outside our index, we noted the acquisition of 2020 de-SPAC, engineering services company Atlas Technical Consultants (ATCX US: +116.73%), which surged after an offer by private equity firm GI Partners.
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