The IPOX® Week
- IPOX® 100 U.S. (ETF: FPX) sheds -4.47%, beats benchmarks anew.
- IPOX® Growth Infusion (GNDX) takes +174 bps. from S&P last week.
- IPOX® SPAC (SPAC) falls just -1.41%, as select specialty stocks gain.
- $13bn Corebridge Financial IPO debuts. More IPOs lined up as IPO window opens.
WEEKLY IPOX® PERFORMANCE REVIEW: Most of the IPOX® Indexes declined during U.S. Futures and Option expiration week, weighed down by rising rates amid weak U.S. inflation numbers, bearish U.S. derivatives positioning and disappointing corporate outlooks. In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX), benchmark for U.S. New Listings, shed -4.47% to -28.84%, YTD, outperforming the S&P 500 (SPX) and Nasdaq 100 (NDX) by +30 bps. and +130 bps., respectively. Negative sentiment extended to Markets abroad, with declines across growth stocks putting pressure on the IPOX® International (ETF: FPXI), IPOX® 100 Europe (ETF: FPXE) and IPOX® China (CNI). We note more relative and absolute strength in the IPOX® MENA (IPEV), which invests in the safe-haven markets across the Middle East. The portfolio added +1.68% to +7.14% YTD last week, more than double when compared to its benchmark. Amongst the U.S.-centric (non-SPAC related) IPOX® Indexes, the IPOX® Growth Infusion (GNDX) ranked on top of last week’s diversified equity indexes performance ranking, declining by just -3.03% to -11.20% YTD, a massive +174 bps. and +274 bps. ahead of the S&P 500 (SPX) and Nasdaq 100 (NDX), respectively.
IPOX® PORTFOLIO HOLDINGS IN FOCUS: In the U.S., IPOX® Portfolio Holdings with (perceived) negative earnings momentum led the list of biggest declines, including high-end luxury wine producer 03/2021 IPO Duckhorn Portfolio (NAPA US: -21.80%), semiconductor maker 11/2019 IPO SiTime (SITM US: -14.77%), online dating platform operator 02/2021 IPO Bumble (BMBL US: -14.30%) and 05/2019 IPO Life science & diagnostics firm Avantor (AVTR US: -12.97%). Select M&A and post-SPAC investments helped to mitigate a portion of the declines, with health technology firm HealthEquity (HQY US: +6.60%), LNG producer Cheniere Energy (LNG US: +3.72%), Kansas City-based Twinkie-maker consumer staple post-SPAC Hostess Brands (TWNK US: +0.93%) and biotech Ionis Pharma (IONS US: -1.09%) leading the way. Amid developments in regards of the planned Mainland China lPO of Chinese-owned, Swiss-domiciled agricultural chemicals maker Syngenta, we note with interest more relative strength in IPOX® 100 U.S. (ETF: FPX) heavyweight 05/2019 Dupont-Spin-off $45bn key agriculture tech play Corteva (CTVA US: -1.86%) and 10/2021 IPO Abu-Dhabi traded Fertiglobe (FERTIGL DH: +3.07%), an IPOX® International (ETF: FPXI) portfolio holding.
GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: 4 sizable IPOs launched internationally last week with the average equally weighted deal gaining +1.89% based on the difference between the final offering price and Friday’s close. Deals abroad included Chinese digital health firm Dingdang (9886 HK: +0.00) and Thai BA Airport Leasehold REIT (BAREIT TB: +3.00%). The U.S. saw renewed New Listings activity, led by AIG’s life insurance unit Corebridge (CRBG US: -1.33%) and PE-backed Third Harmonic Bio (THRD US: +5.88%).
This week, 5 sizable IPO are expected to launch internationally. Chinese financial services firm Lichen China (LICN US, $25m offer) is expected to launch in New York on Monday. Malaysian real estate investment trust AME (AMEREIT MK, $64m offer) is set to launch on Tuesday. Two secondary offers of Chinese firms are expected on Wednesday: Medical devices maker and pharma firm Lepu Medical (Ticker Pending, $224m offer) joins a growing number of Chinese firms listed in Switzerland, while U.S.-listed Tencent Music Entertainment (TME US, 1698 HK) will list in Hong Kong amid U.S. delisting risks. On Thursday, management consulting firm FP Partner (7388 JP, $58m offer) will list in Tokyo.
Other news include: 1) Nasdaq.com features IPOX® 100 U.S. ETF (FPX) as analysts forecast +24% upside. 2) IPOX® 100 Europe (ETF: FPXE) holding, telecom infrastructure firm Vantage Towers surges as Vodafone plans to sell its stake in the firm to private equity. 3) Porsche IPO draws commitments from anchor investors, including Norway’s Government Wealth Fund. 4) Germany plans nationalization of gas companies Uniper, VNG and former Gazprom subsidiary SEFE. 5) Australian miner Mineral Resources plans U.S. listing of lithium unit estimated at $17b market cap. 6) Japanese vehicle maker Honda considers IPO of EV motorcycle business. 7) Dubai toll road operator Salik increases IPO size to $1bn amid high demand, set to debut September 29. 8) Intel cuts valuation expectations of self-driving unit Mobileye to $30bn, could delay IPO to 2023. 9) Oman’s gas pipeline firm OQ picks BofA for $800m IPO, plans Oman/Saudi Arabia dual listing. 10) Adobe tumbles after buying collaboration start-up Figma for $20bn. 11) Shares of Norwegian learning platform, 2021 IPO Kahoot! Surge after General Atlantic buys out 15% stake from SoftBank.
THE IPOX® SPAC (SPAC): The IPOX® SPAC Index fell just -1.41% to -16.47% YTD. IPOX® SPAC Leaders recording upside/downside moves last week include bowling lane operator Bowlero (BOWL US: +12.10%), while media content marketplace Getty Images (GETY US: -32.40%) continued to slump on fears over more stock supply. Other SPAC news from last week: 1) 7 SPACs Announced Merger Agreement including TPB Acquisition I (TPBA US: +0.82%) with Brazil-based agriculture product retailer Lavoro. 2) 4 SPACs Approved Business Combination include a) CF Acquisition VI (CFVI US: +0.50%) with social media platform Rumble (RUM: TBA) and b) Kensington Capital Acquisition IV with battery maker Amprius (AMPX US: -17.00%). 3) 1 SPAC opted to liquidate include Recharge Acquisition (RCHG US: +0.10%) at $10.12/share. 4) No SPAC launched last week in the U.S.
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Indexes continue outperformance of benchmarks amid global rout
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