The IPOX® Week - March 20, 2023
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.
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.
Futures trading involves the substantial risk of loss and is not suitable for all investors.
Each investor must consider whether this is a suitable investment since you may lose all of or more than your initial investment.
Past performance is not indicative of future results.
Latest posts
Never miss a beat
Stay on top of the latest news and market insights
Trade stock, options and futures
Lightspeed offers active and professional traders highly accurate market data, complex order management, fast executions, and multiple routing destinations.
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.
