WEEKLY Summary: Amid U.S. Futures and Options expiration and re-balancing, the IPOX® Indexes traded mixed with individual strategies mostly outperforming the broad-based benchmarks. In the U.S., e.g., the diversified IPOX® 100 U.S. (IPXO), underlying index for the $2.1 billion “FPX” ETF, added +0.21% to +8.70% YTD, +78 bps. ahead of the S&P 500 (ETF: SPY), benchmark for U.S. stocks. Relative strength extended to the IPOX® 100 Europe (IPOE), innovative proxy for the performance of European New Listings and respective M&A trading in Europe and the U.S. Amid big strength in the U.S. dollar, the underlying for the “FPXE” ETF shed -0.52% to +12.73% YTD, a large +140 bps. ahead of the European market. Beneficiary of the move away from China-linked exposure to other markets across emerging and developed Asia-Pacific continued to be the IPOX® Japan (IPJP). The diversified portfolio of Japan-domiciled stocks added to its previous week’s surge, gaining +1.87% to +19.85%, a fresh all-time High and well ahead of the benchmarks.
IPO Investing with the Ipox® 100 ETF (ETF: FPX) since 2006
IPOX® portfolio holDings in focuS: Portfolio Holdings with notable moves last week included Direct Listing application software maker Asana (ASAN US: +21.16%), London-traded security software maker Darktrace (DARK LN: +18.89%), Israel-based e-commerce solutions provider Global E-Online (GLBE US: +13.64%) and innovative U.S. consumer finance company Upstart (UPST US: +12.15%), with sentiment in the payment processing sector propelled by the buy-out offer for 05/2018 IPO GreenSky (GSKY US: +39.98%) by U.S. investment bank Goldman Sachs (GS US: -3.01%). Despite firmer prices towards the week-end, China-linked stocks continued to drop on the week, led by Financials including real estate services providers Sunac Services (1516 HK: -20.88%) and Country Garden Services (6098 HK: -17.94%).
IPOX® SPAC INDEX (SPAC): The Index added +0.16% to -7.23% YTD and +37.80% since its 07/30/2000 launch. SPAC news include: 1) 4 SPACs Announced Merger Agreements: a) Motive Capital with pre-IPO shares marketplace Forge Global; b) EJF Acquisition with fintech startup Pagaya Global with e-scooter maker Gogoro. 2) 6 SPACs Approved Business Combinations include: a) Quell Acquisition with electric jet developer Lilium (LILM US); b) Atlas Crest Investment with another electric aircraft startup Archer (ACHR US) and c) Soaring Eagle Acquisition with biotech Ginkgo Bioworks (DNA). 3) SPACs terminated combinations: a) Yunhong International with Giga Energy. 4) Following the launch of 5 SPACs during the previous week, 7 new SPACs were launched in the U.S. last week.
GLOBAL Deal-flow Review and Outlook: 17 IPOs launched with the average equally weighted deal adding +43.55% based on the difference between the respective final offer price and Friday’s close. The U.S. IPO markets roared back with a vengeance to score 11 new listings, with biotech DICE Therapeutics (DICE US: +117.65%) more than doubling. TSC Consumer-backed drive-through coffee chain Dutch Bro (BROS US: +89.35%), KKR-backed digital identity management software ForgeRock (FORG US: +88.60%), Advent-backed healthcare data analytics provider Definitive Healthcare (DH US: +81.44%), Siemens-backed software consultancy firm Thoughtworks (TWKS US: +63.86%) and Federer-backed shoemaker On (ONON US: +62.29%) all surged on above-range offers. Abroad, Korean shipbuilder Hyundai Heavy Industries (329180 KS: +85.83%) and Belgium’s largest IPO since 2007, specialty chemical supplier, EQT-owned Azelis Group (AZE BB: +7.69%) also rose with all IPOs closing flat or positive on the week. Deals linen up for this week include Tiger-backed restaurant software company Toast (TOST US), Sequoia-backed CRM solution provider Freshworks (FRSH US), PE-backed consumer product private label supplier Knowlton Development (KDC US) and customer experience management firm Majorel Group. Other IPO news include a) oil giant ADNOC and chemical producer OCI to list its fertilizer unit Fertiglobe; b) DevOps coding platform GitLab, HR platform Justworks, African mobile tower operator IHS Tower, Israeli plastic manufacturer Keter Group and Swedish buyout firm Storskogen filed; c) slot machine maker Scientific Games’ lotteries unit and Russian alcohol retailer Mercury Retail mull listing; d) ACWA Power International set to launch its $1.2b IPO in upcoming weeks.
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