The IPOX® Week

Written byIPOX
Published on24 October 2022

Headlines:


  • IPOX® 100 U.S. (ETF: FPX) surges +6.15%, outperforms benchmarks QTD.


  • IPOX® Portfolio Team hits home run with de-SPAC Archaea Energy (LFG).


  • IPOX® SPAC (SPAC) adds +1.89%, No SPACs launched in U.S. last week.


  • $820m IPO of Intel self-driving spin-off Mobileye set to debut Thursday.


WEEKLY IPOX® PERFORMANCE REVIEW: Most IPOX® Indexes gained during last week’s U.S. options expiration week, as equities won the latest tug-of-war vs. U.S. yields, which closed higher for the 12th consecutive week (!!!). Amid lower volatility (VIX: -6.65%), most upside focus was on the outstanding showing of the broad innovation and corporate actions focused IPOX® 100 U.S. (ETF: FPX) which surged a massive +6.15%, +141 bps. ahead of the S&P 500 (SPX) to top the QTD diversified ETF performance rankings. We also note big gains for the large-cap heavy IPOX® Global Super Liquid (IPGL50), adding +5.00%, while the ex-U.S. IPOX® International (ETF: FPXI; +0.84%) also rose. Across Asia-Pacific, the IPOX® Japan (IPJP: -1.48%) declined and the IPOX® China (CNI: -3.22%) fell anew amid a surprising blackout on China GDP data, casting doubt on the country’s economic outlook. Elsewhere, we noted gains in the IPOX® Europe (ETF: FPXE; +1.48%), the Scandinavia-focused IPOX® Nordic (IPND: +1.27%) as well as the Middle East-focused IPOX® MENA (IPEV: +1.93%). Amid a busy IPO M&A market, the large-cap heavy and super-liquid IPOX® Growth Infusion (GNDX) gained +3.45%, +677 bps. YTD ahead of the S&P 500 (SPX).





IPOX® PORTFOLIO HOLDINGS IN FOCUS: Indicative of the unabating trend towards IPO M&A and the significant value in select de-SPACs, the IPOX® portfolio management team hit a home run with de-SPAC U.S. renewable gas producer Archaea Energy (LFG US: +52.57%) last week. The firm, added to the IPOX® 100 U.S. (ETF: FPX) on Sep. 16, soared on oil & gas giant BP’s buyout offer. Other big movers in the IPOX 100 U.S. (ETF: FPX) included video game maker Roblox (RBLX US: +21.09%) and restaurant management software Toast (TOST US: 21.79%), which both surged after upbeat company news and respective analyst upgrades. Winners in the IPOX® International (ETF: FPXI) included Swedish digital bank Nordnet (SAVE SS: +12.97%), Chinese agricultural firm Pinduoduo (PDD US: +10.11%), as well as Saudi exchange operator Tadawul (TADAWULG AB: +10.24%) as IPO activity remains brisk across the MENA region and ahead of the FIFA World Cup. Indonesian super app GoTo (GOTO IJ: -0.99%) fell after negotiating a controlled $1b stake sale by early backers Alibaba and SoftBank. Big Pharma firm serial IPO acquirer Eli Lilly (LLY US: +2.43%) gained after announcing the acquisition of IPOX® constituent Akouos (AKUS US: +79.03%). We also note big strength in recent IPOX® International (ETF: FPXI) and IPOX® Europe (ETF: FPXE) addition German car maker Porsche (P911 GR: +10.21%), adding +16.73% since IPO.



GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: 5 sizable IPOs launched internationally last week, with the average equally weighted deal gaining +6.32% based on the difference between the final offer price and Friday’s close. Deals included Metaverse firm Flowing Cloud Technology (6610 HK: +5.88%), EV battery firm Top Material (360070 KS: +19.33%), ship and aircraft leasing firm SBI Leasing Services (5834 JP: +18.96%), $175m US-IPO of genetic medicine firm Prime Medicine (PRME US: -7.29%), energy grid firm Precise Corp (PCC TB: -14.50%) and renewable fertilizer firm Cinis Fertilizer (CINIS SS: +34.48%).


2 large IPOs are planned internationally this week. Tuesday: Saudi oil drilling firm Arabian Drilling (ticker pending, $711m offer). Thursday: Intel AI driving spin-off re-IPO Mobileye (MBLY US, $820m offer) after slashing valuation.



Other news: 1) Instacart pauses IPO plans to go public in 2022. 2) Saudi Aramco to push ahead with IPO of trading unit. 3) Thai food producer Betagro prices Nov. 2 IPO to raise $453m. 4) PE-firm Silver Lake backs $171m IPO of Abu Dhabi geodata analytics firm Bayanat on Oct. 31. 5) Austrian parking firm Best in Parking plans to raise up to $400m in rare Q1 2023 Vienna IPO. 6) IPOX® Europe (ETF: FPXE) holding, Swedish PE-firm EQT to explore sale of U.S. bus operator First Transit.



THE IPOX® SPAC (SPAC) The Index, currently composed of a selected 50 high conviction plays trading at both the pre- and post-consummation stage, added +1.42% to -20.19% YTD. IPOX® SPAC Leaders recording upside/downside moves last week include oil and gas company Magnolia Oil & Gas (MGY US: +13.28%), while space-based cellular broadband satellite network company AST SpaceMobile (ASTS US: -12.64%) fell sharply. Other SPAC news from last week: 1) 8 SPACs Announced Merger Agreement include Technology & Telecommunication Acquisition (TETE US: +0.10%) with Malaysian fintech Super Apps. 2) 2 SPACs Approved or Completed Business Combination include Executive Network Partnering (ENPC US: -6.19%) with oil & gas company Granite Ridge (GRNT: 10/25). 3) 2 SPACs opted to liquidate include H.I.G Acquisition (HIGA US: $10.04/share) and Sanaby Health Acquisition (SANB US: $10.22/share) making it a total of 40 SPACs to dissolve YTD. 4) 1 SPACs Terminated Merger include Benessere Capital Acquisition (BENE US: +0.29%) with hydrogen-based fuel supplier eCombustible. 5) No SPAC launched last week in the U.S.



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