The IPOX® Week - October 30, 2023
Headlines:
- IPOX® 100 U.S. (ETF: FPX) holds on to outsized gains from the week prior.
- Global IPOX® Indexes outperform benchmarks. IPOX® Japan leads.
- GINDEX® U.S. gains as IPO M&A Bluegreen Vacation doubles on takeover.
- IPOX® SPAC (SPAC) drops 2.85%. 2 SPACs launched in the U.S. last week.
WEEKLY IPOX® PERFORMANCE REVIEW: The IPOX® Indexes traded mixed last week, with our global portfolios maintaining relative strength over benchmarks. In the U.S., The University of Michigan’s consumer confidence index fell to a six-month low as expectations for long-term inflation hit the highest mark since 2011. Ongoing consumer spending concerns and higher inflation prospects present a tough spot for the Federal Reserve, sending short-term bonds lower. On the back of huge outperformance in the week before, the IPOX® 100 U.S. (ETF: FPX) managed to retain previous gains, slipping just -0.02% to +4.64% YTD. Globally, the IPOX® International (ETF: FPXI) gained +0.90%, taking 83 bps. from the MSCI World ex-USA (MXWOU) benchmark, as select Korean large caps climbed after Seoul banned short-selling. The IPOX® Europe (ETF: FPXE) fell -0.73% amid a strengthening Euro, edging 2 bps. ahead of the STOXX 50 Europe benchmark, yet again. The IPOX® Japan (IPJP: +3.32%) was our biggest winner last week, taking 101 bps. from the TSE Growth Market 250 Index (TSEMOTHR), reaching its highest level since the beginning of this quarter.
IPOX® PORTFOLIO STOCKS IN FOCUS: TAs earnings season is ending, select returns of our holdings showed high dispersions once again. The IPOX® 100 U.S. (ETF: FPX) was led by language learning app Duolingo (DUOL US: +35.64%), which rallied to a new post-IPO high after a profit surprise and plans to venture into math and music tuition. Fintech firm Shift4 Payments (FOUR US: +17.91%) climbed on earnings, while global university tuition payment processor Flywire (FLYW US: -30.45%) fell on disappointing results. IPOX® International (ETF: FPXI) large cap holding, Japanese multinational electronics corporation TDK (6762 JP: +7.88%) rose to a new all-time-high, leading the index, while Stevanato (STVN US: +7.27%) came in second. The Italian pharma glass maker led the IPOX® Europe (ETF: FPXE), followed by Polish logistics firm InPost (INPST NA: +5.93%), gaining on rising demand. Plastic surgery firm Establishment Labs (ESTA US: -38.60%) received analyst downgrades. Member-only luxury club platform Soho House (SHCO US: -19.52%) fell as wet summer weather reportedly hurt Q3 revenues. Our GINDEX® U.S. (GNDX) was led higher as IPO M&A Bluegreen Vacations (BVH US: +107.18%) doubled on acquisition by Hilton.
IPO Review: 7 sizable firms started trading last week, gaining +10.25% on average between opening price and Friday’s close. The largest listing was by Chinese chipmaking firm Will Semiconductor (WILL SW: +0.35%, $442m offer), which gained marginally amid the characteristically low volume of Swiss GDR listings. In the U.S., cancer biotech Cargo Therapeutics (CRGX US: -3.13%, $281m) fell after pricing at bottom, amid a sluggish trend in recent biotech listings. Norwegian consultancy Norconsult (NORCO NO: -0.26%, $196m) started trading in Oslo.
7 firms with an offer size above $25m are expected to list this week, the most notable IPOs being: 1) Korean EV battery materials maker EcoPro Materials (450080 KS, $314m offer size), the second-largest offer in South Korea this year. 2) Abu Dhabi alternative investment firm Investcorp Capital (ICAP UH, $450m) 3) Contract pharma research spinoff WuXi XDC Cayman (2268 HK, $470m).
For more information about upcoming and recent listings visit the IPOX® IPO Calendar.
THE IPOX® SPAC (SPAC): The Index of 50 constituents trading at both the pre- and post-consummation stage fell -2.85% to +5.61% YTD last week. IPOX® SPAC Leaders recording the most upside moves last week was pet sitting and dog walking platform Rover Group (ROVR US: +24.27%) as the company topped Q3 expectations and raised guidance. Swiss biotech MoonLake Immunotherapeutics (MLTX US: -26.58%) plunged as clinical trial disappointed. Other SPAC news from last week: 1) no SPAC Announced Merger Agreement. 2) 1 SPAC Approved Business Combinations with Quantum FinTech Acquisition (QFTA US: -25.70%) approved merger with financial services company AtlasClear (ATCH US), which is itself combining with correspondent full-services securities broker-dealer Wilson Davis & Co and bank holding company Commercial Bancorp of Wyoming. 3) 3 SPACs announced merger terminations. 4). No SPAC announced liquidation. 5) 2 new SPACs 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.
