The IPOX® Week - November 7, 2022
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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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.
