The IPOX® Week
Headlines:
- IPOX® 100 U.S. (ETF: FPX) gains 8 bps. as small-caps are pressured anew.
- Financing shake-up likely to have positive impact on U.S. IPO activity.
- IPOX® SPAC (SPAC) drops -0.04%. 1 U.S. SPAC launched last week.
- Adnoc Gas debuts with gains. Three IPOs set to launch this week.
WEEKLY IPOX® PERFORMANCE REVIEW: As U.S. Futures and Options expirations week came to a close, the continued turmoil in the U.S. banking sector led to another spike in volatility (VIX: +2.86%) and huge gyrations in rates with U.S. treasury yields plunging anew as investors kept flocking to save haven assets. While the broader U.S. market was slightly up, the IPOX® Indexes traded largely flat during quarterly rebalancing week. In the U.S., the sell-off in small-cap firms, e.g., Russell 2000 (RTY: -2.64%); S&P 600 Smallcap (SML: -3.28%), pressured the growth-heavy IPOX® 100 U.S. (ETF: FPX), which gained +0.08% to +1.96% YTD. Outside the U.S., the IPOX® International (ETF: FPXI) gained +0.03 to -1.05% YTD as the IPOX® China (CNI: +3.47%) climbed back. As the European Central Bank announced another 50 bps. rate hike, the IPOX® Europe (ETF: FPXE) dropped -3.01% to +1.82% amid continuing worries surrounding major Swiss bank Credit Suisse. As this year’s largest IPO of Abu Dhabi’s Adnoc Gas launched successfully, the IPOX® MENA (IPEV: -1.94%) fell amid profit taking as energy commodity prices dropped on recession fears.
FALLOUT FROM SVB - IPO MARKET OUTLOOK: Notably, CNBC reports late in the week that analysts predict the more challenging fundraising landscape to act as a catalyst for cash-hungry, mostly VC-backed companies to enter the public market earlier than initially planned, possibly at lower and more attractive valuations. This aligns with IPOX®'s perspective about the post-SVB era IPO market, which will likely see more activity amid the recent market downturn.
IPOX® PORTFOLIO STOCKS IN FOCUS: The IPOX® 100 U.S. (ETF: FPX) was led by several holdings in the healthcare-biotech sector, e.g. primary care platform Agilon Health (AGL US: +16.90%), medical devices firm Inari Medical (NARI US: +14.26%) and cancer biotech Arcellx (ACLX US: +10.70%). Medical imaging giant, recent spin-off GE Healthcare (GEHC US: +1.16%) peaked to a new post-IPO high on Tuesday. Laggards included firms in the energy sector amid falling oil and gas prices, e.g., fracking firm Profrac Holding (ACDC US: -19.62%) and LNG producer New Fortress Energy (NFE US: -13.45%). The surge in the health care sector extended to the IPOX® Europe (ETF: FPXE), where British biotech Bicycle Therapeutics (BCYC US: +8.49%) gained most. As contagion fears weighted on the financial sector, investment manager M&G (MNG LN: -17.15%) and Austrian bank Bawag (BG AV: -17.05%) dropped. The IPOX® International (ETF: FPXI) was led by luggage maker Samsonite (1910 HK: +11.29%), which surged after earnings, and Chinese online pharmaceuticals firm JD Health (6618 HK: +10.67%). Saudi financial services provider Elm (ELM AB: +2.06%) gained anew to reach a record high, while Israeli solar power firm Solaredge (SEDG US: -12.19%) and Japanese recruiting platform operator Visional (4194 JP: -11.12%) lagged.
Several IPOX® Holdings reached new post-IPO highs this week, e.g., our most recent IPOX® Watch feature, organ transplantation firm TransMedics (TMDX US: +4.73%), Danish pharma giant and Wegovy maker Novo Nordisk (NOVOB DC: +1.21%), Belgian vehicle glass repair firm D’Ieteren (DIE BB: +5.25%), Austrian hydropower technology specialist Andritz (ANDR AV: +2.00%), German radar maker Hensoldt (HAG GR: +7.70%), Swedish steel maker Alleima (ALLEI SS: +3.53%) and medical imaging spin-off GE Healthcare (GEHC US: +1.81%), among others.
GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: 6 sizable IPO started trading last week, gaining +20.79% based on the difference between the final offer price and Friday’s close. All new listings gained, including the two record-breaking offers in the MENA region: Abu Dhabi’s largest IPO ever, Adnoc Gas (ADNOCGAS UH: +20.25%) and Oman’s biggest listing in 10 years, Abraj Energy (ABRJ OM: +19.20%). Aircraft repair firm Evergreen Aviation (2645 TT: +32.21%) climbed in Taiwan, while GDR-offer of Chinese carbon materials firm Fangda (FDCB: +0.23%) launched in Zurich amid news that the Chinese government is pausing approvals of international secondary offerings on concerns about domestic market stability. Thai recruitment firm PRTR (PRTR TB: +31.94%) and Turkish renewable energy firm Akfen (AKFYE TI: +20.92%) surged.
UPCOMING DEALS: 3 large listings are planned for this week. Thursday: Japanese magazine publisher Halmek (7119 JP, $31m offer). Friday: Philippine renewable energy firm Alternergy (ALTER PM, $26m) and Brait-backed South African food manufacturer Premier Group (PMR SJ, $193m).
OTHER IPO NEWS: 1) Bosch-backed Chinese self-driving firm WeDrive files for $500m U.S. IPO. 2) Thai chemicals firm Indorama mulls $1b IPO for oxides unit in the U.S. 3) Saudi Arabia considers allowing options trading and SPAC listings amid strong IPO pipeline. 4) Abu Dhabi’s Presight AI launches $496m IPO on March 27 after receiving $26m in orders. 5) Dubai’s first IPO this year, exchange house Al Ansari sells out in under an hour, raising $210m. Listing planned for April 6. 6) Thai alcoholic beverages firm ThaiBev explores Singapore IPO for its spirits business at valuation of up to $10b. 7) Thailand’s agribusiness CP Group considers $1b IPO of feed and seed business as early as 2024. 8) Private equity firm Creador plans $179m IPO of Malaysian low cost retailer Eco-Shop as early as September. 9) Indonesian miner Harita Nickel launches $650m IPO to boost EV ambitions, largest in the country this year. 10) Hong Kong insurance firm FWD re-files for $1b IPO. 11) China’s Domino’s Pizza franchisee DPC Dash readies $90m IPO to launch March 28.
THE IPOX® SPAC (SPAC): The Index, currently composed of a selected 50 high conviction plays trading at both the pre- and post-consummation stage fell -0.04% to +1.84% YTD. IPOX® SPAC Leaders recording upside/downside moves last week include beaten down plastic waste recycle firm PureCycle Technologies (PCT US: +28.40%) soared on better than expected earning and new partnership. Churchill Capital V (CCV US: -8.55%) retrieved from last week’s pop on potential merger talk with building panel manufacturer Sustainable Living Innovations. Other SPAC news from last week: 1) 3 SPACs Announced Merger Agreement include HCM Acquisition (HCMA US: -0.14%) with Mexican luxury resort venues developer Murano. 2) 4 SPACs Approved Business Combination include Summit Healthcare with Beijing-based rabies vaccines maker YS Biopharma (YS US: +2.32%). 3) 7 SPACs announced or commenced liquidation. 4) 1 SPAC launched last week in the U.S.
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