The IPOX® Week, February 27, 2017

  • IPOX Indexes trade mixed across global regions, IPOX Asia-Pacific (IPTA) lead gains.
  • Big week for U.S. IPOs as social networker Snap Inc. (SNAP US) set to list Thursday, March 2nd.
  • Ahead of Aramco, Saudi Arabian IPO market re-opens.

IPOX Indexes trade mixed across global regions, IPOX Asia-Pacific (IPTA) lead gains. The IPOX Indexes traded mixed across the IPOX Indexes universe last week. While the IPOX U.S. (IPXC, IPXO, IPXT) followed U.S. small caps lower and IPOX Europe (IXTE) declined for a second week – impacted by increasing political jitters and mixed earnings – the IPOX Asia-Pacific (IPTA) jumped and IPOX China (IPXUCHCP, CNI) rose anew. Notable positive movers within the IPOX Indexes Universe included U.S. payment processer, Jack-Dorsey-led Square (SQ US: +20.46%), Japanese social networker hard-hit Line (LN US: +10.06%) and Chinese Financial China Cinda Asset Management (1359 HK: +9.25%). The respective IPOX Regional Indexes were pressured by big declines in communications equipment maker Acacia Communications (ACIA US: -18.83%), Chinese social networker Weibo (WB US: -7.63%), Australian miner South32 (S32 AT: -8.55%), as well as U.S. computer equipment maker Hewlett Packard Enterprises (HPE US: -5.90%)

IPOX Returns (%) (P) Week 2017 2016
Exposure: Global/International (xUS) (USD)
IPOX Global 50 (IPGL50) -0.35 6.27 -2.50
IPOX Global 30 (IPGL30) -0.09 6.24 1.73
IPOX Intern. (IPXI)* -0.02 7.46 -4.63
Exposure: United States
IPOX Composite U.S. (IPXC)* -0.13 7.94 7.24
IPOX 100 U.S. (IPXO)* -0.49 5.82 5.89
IPOX 30 U.S. (IPXT) -0.63 5.79 8.44
Exposure: Europe/Nordic Region
IPOX Europe (IXTE) -0.58 2.67 0.18
IPOX Nordic (IPND) -0.78 4.03 -1.59
Exposure: Asia-Pacific/China Region
IPOX Asia-Pacific (IPTA) 1.54 6.43 -1.96
IPOX China C. (IPXUCHCHP)* 1.04 9.64 -3.73
IPOX China (CNI) 0.58 11.31 -10.21

* Basis for Exchange-Traded Products (e.g. FPX US, FPX LN, FPXU FP, FPXI US, TCIP110 IT) and CME Futures (e-mini IPOX 100 U.S. Index Futures [commodity trading symbol: IPOH7]).

Ahead of Snap Inc. (SNAP US), IPOX-linked investment products in focus. IPOX-linked investment products traded mixed ahead of the landmark IPO of U.S. social networker Snap (SNAP US). For example, available to investors in the U.S. and Europe, the USD million 673, 5-star First Trust U.S. Equity Opportunities ETF (FPX US, FPX LN) fell to +5.84% YTD, while its international counterpart (FPXI US) rose to +8.13% YTD. The IPOX Allocation Fund (OIPAX), an actively managed fund product, traded unchanged on the week.

IPOX-linked Investing vs. U.S. benchmarks since 2006:

Big week for U.S. IPOs as social networker Snap Inc. (SNAP US) set to list Thursday, March 2nd. Ahead of Aramco, Saudi Arabian IPO market re-opens. At least four notable IPOs commenced trading last week, with respective deals closing the week positive based on offer. Significant deal flow is lined up for this week, with Thursday’s IPO of U.S. social networker Snap (SNAP US) making the top of the list. Other firms set to go public include alternative asset manager PA-based Hamilton Lane (HLNE US), as well as Vietnamese low-cost airline Vietjet (VJC VN). Ahead of the mammoth IPO of oil producer Aramco, we note the re-opening of the Saudi IPO market with 6 deals over the week-end.

Traded IPOs (week of 02/20/2017) Country
Able Engineering Holdings Inc. Hong Kong
GBGI Ltd. United Kingdom
GME Group Holdings Ltd. Hong Kong
Oncopeptides AB Sweden
Upcoming IPOs (week of 02/27/2017) Country
Al Samaani Factory For Metals Industries Saudi Arabia
Abdullah Saad Moham Saudi Arabia
Al-Omran Industrial & Trading Co. Saudi Arabia
Arab Sea Information Systems Co. Saudi Arabia
Baazeem Trading Co. Saudi Arabia
China Yuhua Education Corp. Ltd. Hong Kong
Hamilton Lane Inc. United States
Raydan Co. Saudi Arabia
Snap Inc. United States
Vietjet Aviation JSC Vietnam
Xiangxing International Holding Ltd. Hong Kong

Josef Schuster is the founder of IPOX Schuster LLC (www.ipoxschuster.com), a Chicago-based Financial Services company specialized in Financial Products Design related to Initial Public Offerings and corporate Spin-offs. He is the chief architect of the IPOX Indexes, a global index group initiated in 2004 that encompasses an index technology allowing for asset-allocation focused exposure to the “going public” effect associated with global IPOs and Spin-offs. Mr. Schuster earned his Bachelor of Arts degree in Business Administration in 1994 from the European Business School, London. Mr. Schuster was also awarded a MSc in Accounting and Finance in August 1996 and a MPhil / PhD in Accounting and Finance in June 2003 from the London School of Economics.

ABOUT THE IPOX INDEXES: Through the range of the IPOX Indexes, market participants have an innovative opportunity to navigate the global IPO and Spin-off market and to track the performance of this economically significant sector more accurately and comprehensively than with any other index group. The IPOX Indexes accomplish the systematic indexation of the aftermarket performance of the IPO and Spin-off sector, while – at the same time – preserving the benefits of diversification. Linked to the IPOX 100 U.S. Index, for example, IPOX-linked investment products available to investors include the pioneering USD million 600, 5-star First Trust U.S. IPO ETF (ticker: FPX). On February 18, 2016, CME Group, the world’s largest exchange operator, launched e-mini IPOX 100 U.S. Index Futures, offering market participants for the first time a tool to manage the aggregate risk associated with U.S. IPOs and Spin-offs.

Disclosure: the author has no position in the stocks mentioned.

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