The IPOX® Week
Headlines:
- IPOX® International has big week. IPOX® U.S. 100 falls, beats NASDAQ.
- IPOX® Growth Infusion extends YTD jump vs. all U.S. benchmarks.
- IPOX® SPAC (SPAC) drops -1.88%. No SPACs in the U.S. last week.
- MENA IPO Bayanat AI soars +273%, 11 IPOs with over $2b deal flow this week.
WEEKLY IPOX® PERFORMANCE REVIEW: Amid earnings, post-FED market reaction and U.S. economic numbers driving big gyrations across asset classes and the big bounce in Chinese stocks, the IPOX® Indexes traded mixed last week. Propelled by the massive jump in the IPOX® China (CNI: +13.49%), top of the list ranked the IPOX® International (ETF: FPXI), adding +4.42% to -36.25% YTD for a third straight week of gains. Strength extended to the IPOX® Europe (ETF: FPXE) adding +2.54% with the IPOX® Nordic (IPND) rising +4.94%. Sentiment was weaker in the U.S. with the broad-based and growth-focused IPOX® 100 U.S. (ETF: FPX) reversing last week’s gains, dropping by -4.06% to -31.34% YTD, lagging the S&P 500 (SPX) by -71 bps., while outperforming the Nasdaq 100 (NDX) and other innovation-focused strategies. In the U.S., we note with interest more relative strength in IPO M&As with the large-cap heavy and super-liquid IPOX® Growth Infusion (GNDX) shedding just -0.45% to -9.80% YTD last week, taking a further +289 bps. from the S&P 500 (SPX) to extend its relative YTD gain to a massive +1004 bps. YTD.
IPOX® PORTFOLIO HOLDINGS IN FOCUS: With earnings driving a big dispersion in returns across individual IPOX® portfolio holdings, big upside movers in the IPOX® 100 U.S. (ETF: FPX) included biotechnology firms United Therapeutics (UTHR US: +14.02%) and Harmony Biosciences (HRMY US: +12.35%), as well as renewable energy firm Sunrun (RUN US: +9.77%). On the opposite end, B2B data firm ZoomInfo Technologies (ZI US: -35.19%) and software collaboration firm Gitlab (GTLB US: -25.16%) fell sharply as the implosion in high-beta exposure continued unabated. Abroad, Dutch Tencent investor Prosus (PRX NA: +21.33%) led the IPOX® Europe (ETF: FPXE) on improved China sentiment, which also lifted IPOX® International (ETF: FPXI) holdings such as social media app Kuaishou Technology (1024 HK: +27.74%) and EV car maker Li Auto (LI US: +28.40%). Other movers included Swedish wind energy firm OX2 (OX2 SS: +13.08%) and IPOX® Week-featured Prometheus Biosciences (RXDX US: -12.20%), which fell despite a price target upgrade at investment bank Stifel and the announcement of a new clinical trial. We also note the fresh all-time high in Brazil’s consumer goods wholesaler 03/2021 IPO Sendas Distribuidora (ASAI3 BZ: +13.29%), an IPOX® International (ETF: FPXI) portfolio holding.
GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: 5 sizable IPO started trading internationally last week, gaining +59.85% based on the difference between the final offer price and Friday’s close. Silver Lake-backed Abu Dhabi geospatial data firm Bayanat AI (BAYANAT UH: 272.73%), Thai pet food producer Asian Alliance International (AAI TB: +41.44%) and Chinese cosmetics firm Giant Biogene (2367 HK: +9.88%) all gained, while Korean electronics certificate issuer QRT (405100 KS: -19.55%) and Thai meat producer Betagro (BTG TB: -6.25%) fell.
Amid the post-IPO gains amongst recent deals driving the improvement in IPO sentiment - including Porsche (P911 GR: +21.58% since IPO) and Socionext (6526 JP: +64.93% since IPO) – at least 11 firms are expected to go public this week. Monday: Saudi oil firm Arabian Drilling (ARABIAND AB: $711m offer) and Thai plastic surgery clinics operator Klinique (KLINIQ TB: $43m). Tuesday: Chinese medical devices spin-off LEPU ScienTech Medical (2291 HK: $90m) and three Indonesian firms: Owner of E-commerce app Blibli (BELI IJ: $516m), disposable medical device manufacturer OneMed (OMED IJ: $83m) and palm oil firm Citra Borneo Utama (CBUT IJ: $52m). Wednesday: North Sea oil & gas firm Ithaca Energy (ITH LN: $351m) in London and Mainland China-domiciled marketing firm Many Idea Cloud (6696 HK: $49m) in Hong Kong. Thursday: Biotechs Acrivon Therapeutics (ACRV US: $100m) and Intensity Therapeutics (INTS US: $10m). Friday: Chinese clothing e-commerce firm Zibuyu (2420 HK: $35m)
Other news: 1) Dubai district cooling firm Empower upsizes IPO to $543m. 2) Dubai school operator Taaleem to raise $204m in rare private sector IPO. 3) Communication infrastructure firm Riyadh Cables to raise $400m on Tadawul exchange. 4) MENA KFC operator Americana set for $2b IPO in Saudi & UAE. 5) Saudi utility firm Marafiq prices IPO to raise $1.7b. 5) Finnish EV firm Valmet Automotive withdraws $140m IPO on market condition. 6) Auto maker Stellantis mulls spin-off of luxury brand Maserati.
THE IPOX® SPAC (SPAC): The Index of select 50 companies trading at both the pre- and post-consummation stage, fell -1.88% to -20.40% YTD last week. Here, while mobile office and portable storage unit provider WillScot Mobile Mini (WSC US: +6.99%) rose after reporting better-than-expected quarterly numbers, lithium-ion-battery maker Enovix (ENVX US: -41.95%) plunged on missing Q3 targets. Other SPAC news from last week: 1) 6 SPACs Announced Merger Agreement include a) Flame Acquisition (FLME US: +0.00%) with energy company Sable Offshore and b) Breeze Holding Acquisition (BREZ US: +0.00%) with Texas-based ammunition manufacturer True Velocity (TV Ammo). 2) No SPACs Approved or Completed Business Combination. 3) 1 SPACs opted to liquidate include Natural Order Acquisition (NOAC US: $10.07/share). 4) No SPAC launched last week in the U.S.
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