The IPOX® Week, July 30, 2018

  • IPOX 100 U.S. (IPXO) follows U.S. small-caps lower as earnings drive massive gyrations in equity index spreads.
  • IPOX Nordic (IPND) closes week at all-time high.
  • IPOX adds the IPOX Japan (IPJP).
  • IPO Deal-flow Review & Outlook: Big deal flow on U.S. exchanges / Commercial Real estate company Cushman & Wakefield (CWK) lined up as deal flow cools.

IPOX 100 U.S. follows U.S. small-caps lower as earnings cause massive gyrations in equity index spreads. The IPOX Indexes tended relatively weak last week, weighed by big declines in individual high beta holdings after earnings as the key, broadly diversified global benchmarks benefited from asset allocation shifts after European/U.S. trade optimism and relatively solid U.S. economic data. In the U.S., e.g., the IPOX 100 U.S. (IPXO) followed U.S. small-caps lower, shedding -223 bps., -284 bps. more than when compared to the S&P 500 (SPX), benchmark for U.S. stocks. Here, significant losses in firms including social networker Twitter (TWTR US: -21.42%), High Frequency trading firm Virtu Financial (VIRT US: -18.16%) or automobile maker Fiat Chrysler (FCAU US: -14.17%) far outpaced strong gains in firms including food ordering platform operator Chicago-based Grubhub (GRUB US: +17.03%), special chemicals maker Ingevity (NGVT US: +10.09%) or online car seller Cargurus (CARG US: +8.92%).

IPOX Nordic (IPND) closes week at all-time high: Amid strong gains in select portfolio holdings including Stockholm-traded consumer finance firm Resurs Holding (RESURS SS: +15.40%) or diversified investment company Lifco (LIFCOB SS: +6.33%), we note the fresh all-time high in the IPOX Nordic (IPND) on Friday.

IPOX adds the IPOX Japan (IPJP). IPOX is pleased to note that the IPOX Japan (IPJP) has now been added to its list of live portfolio strategies. Contact [email protected] for details.

IPOX-linked Investment Products Performance Update: Last week, the USD billion 1.2 IPOX 100 U.S. (IPXO)-linked First Trust U.S. Equity Opportunities ETF (FPX) fell +5.72% YTD, while its international version (FPXI) rose to +2.18% YTD. Amongst IPOX-linked actively managed funds, the Catalyst IPOX® Allocation Fund (OIPAX) declined to +8.61% YTD.

IPOX® 100 U.S. – Investing with the “FPX” ETF since 2006

IPOX Price Returns (%) Last Week 2017 2018 YTD
Exposure: Global/International (xUS) (USD) (Price)
IPOX Global (IPGL50) -0.39 28.59 3.14
IPOX International (IPXI)* 0.63 37.80 0.73
Exposure: United States (USD) (Price)
IPOX Composite U.S. (IPXC)* -0.85 33.64 7.69
IPOX 100 U.S. (IPXO)* -2.23 26.04 5.47
IPOX 30 U.S. (IPXT) -1.91 26.63 2.55
Exposure: Europe/Nordic Region (EUR) (Price)
IPOX Europe (IXTE) 0.37 19.27 5.79
IPOX Nordic (IPND) 1.33 17.91 4.64
Exposure: Asia-Pacific/China Region (USD) (Price)
IPOX Asia-Pacific (IPTA) 1.87 23.30 0.43
IPOX China (CNI) 0.58 37.67 5.06
IPOX Japan (IPJP) 1.27 N/A N/A

* Basis for ETPs: FPX US, FPX LN, FPXU FP, FPXI US, TCIP110 IT and CME listed e-mini IPOX® 100 U.S. Index Futures [Symbol: IPOU8].

IPO Deal-flow Review & Outlook: Big deal flow on U.S. exchanges / Commercial Real estate company Cushman & Wakefield (CWK) lined up as deal flow cools. At least 24 (non-China A shares and non-local India) firms debuted last week across accessible regions, with the average (median) equally-weighted firm adding +29.57% (+9.00%) based on the difference between the final offering price and Friday’s close. While the biggest initial jumps belonged to small IPOs in Japan, deals in the U.S. continued to leave significant money on the table, including infrastructure software maker Tenable Holdings (TENB US: +32.61%), China-based social networker Pinduoduo (PDD US: +29.47%) or London-based IT services provider Endava (DAVA US: +26.00%). Global deal flow is set to cool off this week with most focus on the USD million 810 IPO of global real estate services firm, loss-making P/E deal Cushman & Wakefield (CWK US), followed by audio devices maker Sonos (SONO US) and Netgear (NTGR US)-Spin-off Arlo Technologies (ARLO US). The H.K. market is also set to add two more education stocks to its list of traded firms, including Bojun Education (1758 HK) and Hope Education Group (1765 HK).

Select IPOs traded (week: 07/23/2018) Domicile
Aurora Mobile Ltd China
Berry Petroleum Corp United States
Bloom Energy Corp United States
Cango Inc/KY China
Endava PLC Britain
Focus Financial Partners Inc United States
Opera Ltd Norway
Pinduoduo Inc China
Plaza SA Chile
Tenable Holdings Inc United States
Select IPOs expected (week: 07/30/2018) Domicile
Arlo Technologies Inc United States
Bojun Education Co Ltd China
Cushman & Wakefield PLC United States
Grit Real Estate Income Group Ltd Mauritius
Hope Education Group Hong Kong
Sonos Inc United States

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.

Lime Brokerage LLC is not affiliated with these service providers. Data, information, and material (“content”) is provided for informational and educational purposes only. This content neither is, nor should be construed as an offer, solicitation, or recommendation to buy or sell any securities. Any investment decisions made by the user through the use of such content is solely based on the users independent analysis taking into consideration your financial circumstances, investment objectives, and risk tolerance. Lime Brokerage LLC does not endorse, offer or recommend any of the services provided by any of the above service providers and any service used to execute any trading strategies are solely based on the independent analysis of the user.

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