The IPOX® Week

Written byIPOX
Published on31 October 2022

Headlines:


  • IPOX® 100 U.S. (ETF: FPX) gains +3.90%, zooms past Nasdaq 100 YTD.


  • IPOX® Growth Infusion extends 2022 lead vs. S&P to massive +870 bps.


  • IPOX® SPAC (SPAC) adds +1.65%, No SPACs in the U.S. last week.


  • Mobileye soars +29% as recent IPOs score big post-IPO gains.


WEEKLY IPOX® PERFORMANCE REVIEW: Most IPOX® Indexes rose strongly last week after a modest decline in global interest global rates improved underlying sentiment for equities towards month-end. Ahead of a huge week for earnings with 44 portfolio holdings set to report this week, e.g., the innovation-focused, FANG-free IPOX® 100 U.S. (ETF: FPX) added +3.90%, in line with the S&P 500 (SPX) and a large +180 bps. ahead of the Nasdaq 100 (NDX), benchmark for growth stocks. Gains extended to markets abroad with the IPOX® Nordic (IPND) and IPOX® Europe (ETF: FPXE) surging +6.24% and +4.60%, respectively. The ex-U.S. IPOX® International (ETF: FPXI; +0.20%) and IPOX® Japan (IPJP: +4.04%) also had a firm week, while the IPOX® China (CNI: -8.12%) fell anew amid liquidation selling across China-domiciled exposure. Across MENA, the Middle East-focused IPOX® MENA (IPEV: -0.63%) declined as Saudi Arabia’s sovereign wealth fund PIF announcement of more share sales pressured sentiment ahead of the FIFA World Cup. With IPO M&A at brisk pace, we note more gains for the IPOX® Growth Infusion (GNDX), adding +4.67% and extending its YTD lead vs. the S&P 500 (SPX) to +870 bps.



IPOX® PORTFOLIO HOLDINGS IN FOCUS: Amid earnings, portfolio stocks recording big moves last week included energy solutions providers, i.e., ChampionX (CHX US: +22.06%), IPOX® Europe (ETF: FPXE) holding gas utility Italgas (IG IM: +11.17%) as well as a slew of biotech/pharma plays, such as Verve Therapeutics (VERV US: +27.19%), Prometheus Biosciences (RXDX US: +13.11%) and BoneSupport (BONEX SS: +20.57%), while success of recent IPO genetic medicine firm Prime Medicine (PRME US: +18.33%) has been quoted as a sign of a recovery in the biotech IPO market. Corporate actions in the IPOX® U.S. Composite (IPXC) universe included the buyout offer for Chicago-based BBQ grill maker Weber (WEBR US: +28.24%) and glass repair unit of IPOX® Europe (ETF: FPXE) holding, automotive glass firm D’Ieteren (DIE BB: +8.51%). IPOX® International (ETF: FPXI) and IPOX® Europe (ETF: FPXE) constituent insurance company Arch Capital (ACGL US: +17.52%) surged after being added to the S&P 500, replacing Twitter. Last week’s IPOX® ETF laggards included the slew of China-domiciled firms, such as Chinese data center firm Chindata (CD US: -19.06%) and Tencent-backing tech investor Prosus (PRX NA: -15.89%).




GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: The spin-off IPO of Intel self-driving car unit, U.S.-traded Mobileye (MBLY US) was the only sizable IPO last week, gaining +28.57% based on the difference between the final offer price and Friday’s close. Click here to read the latest edition of The IPOX® Watch, featuring insights on Mobileye.


5 international IPOs are expected to start trading this week. Monday: Abu Dhabi’s Bayanat AI (BAYANAT UH: $171m offer), a Silver Lake-backed geospatial data analysis unit of AI firm Group 24. Wednesday: Thailand’s meat producer Betagro (BTG TB: $502m offer). Friday: Hong Kong listing of Chinese skincare firm Giant Biogene (2367 HK, $80m offer) and two Indonesian firms: Disposable medical device manufacturer OneMed (OMED IJ: $83m) and palm oil firm Citra Borneo Utama (CBUT IJ: $52m).



Other news: 1) Owner of Indonesian e-commerce firm Blibli raises $513m in upsized IPO, trading to start Nov. 7. 2) North Sea Oil & Gas firm Ithaca Energy confirms plan to raise $1b in London IPO. 3) Welkin China Private Equity pauses $300m London IPO. 4) Nasdaq halts IPOs of small Chinese firms as it probes stock rallies. 5) Recent IPOs surge to reach new highs: Socionext (6526 JP: +2.92%), IPOX® U.S.-tracked Corebridge (CRBG US: +6.33%), Prime Medicine (PRME US: +18.33%) and new IPOX® International (ETF: FPXI) and IPOX® Europe (ETF: FPXE) member Porsche (P911 GR: +4.10%) all gained substantially.




THE IPOX® SPAC (SPAC): The Index, currently composed of a select list of 50 high conviction opportunities trading at the pre- and post-consummation stage, added +1.65% to -18.87% YTD. IPOX® SPAC Leaders recording big moves include crop productivity AgriTech company Bioceres Crop Solutions (BIOX US: +15.19%), while “last mile” mobile health and transportation services provider DocGo (DCGO US: -11.00%) fell. Other SPAC news from last week: 1) 4 SPACs Announced Merger Agreement include Jupiter Wellness Acquisition (JWAC US: 0.00%), with Chinese car maker Chijet Motor. 2) 8 SPACs Approved or Completed Business Combination include a) BOA Acquisition with Gen-Z focused vacation and co-working accommodation provider Selina Hospitality (SLNA US), surging as much as +442% after debuting and b) Ignyte Acquisition with Satellite communication systems developer SatixFx Communication (SATX US), soaring as much as +534%. 3) 3 SPACs opted to liquidate include Benessere Capital Acquisition (BENE US: $10.45/shares) just days after deal termination, making it a total of 43 SPACs to dissolve YTD. 4) No SPAC launched last week in the U.S.

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