The IPOX® Week, October 08, 2018

  • IPOX Indexes start new quarter with sharp losses.
  • IPOX Focus Stock French fries Maker Lamb Weston (LW US): The tale of a successful U.S. Spin-off.
  • IPOX expands Index franchise with launch of “FPXE” ETF.
  • IPO Deal-flow Review & Outlook: Amid turbulent markets, U.S. IPOs continue to leave big “money on the table”. Foreign deals lag anew. Busy week for deals ahead.

IPOX Indexes start quarter with sharp losses, China-linked exposure leads: Continued uncertainty over trade and rising yields across the global regions pressured the IPOX Indexes during the first week of the new quarter. Losses were broad-based and heavy in China-linked exposure, while YTD relative gains in the IPOX Europe Indexes (IPOE, IXTE, IPND) narrowed. In the U.S., the IPOX 100 U.S. (IPXO) fell, but outperformed the Russell 2000 (RTY) and Nasdaq 100 (NDX). The biggest losses amongst individual IPOX portfolio holdings on the week belonged to a slew of high-beta, relatively unseasoned growth companies which sharply reversed on profit taking, including after quarterly reports, such as online subscription and personal shopping platform operator Stitch Fix (SFIX US: -39.91%) or application software makers SmartSheet (SMAR US: -17.72%) and Coupa Software (COUP US: -12.72%).

IPOX Focus Stock French fries Maker Lamb Weston (LW US): A tale of a successful U.S. Spin-off: We note the fresh all-time high in IPOX holding IL-based USD billion 13.2 Conagra Brands (CAG US: -1.12%) Spin-off Lamb Weston (LW US), America’s leading producer of French fries, following a strong earnings report. After outperforming by a massive 13,122 bps. since its Spin-off date, the company now closes in on the market cap. of its (former) parent.

IPOX expands Index franchise with launch of “FPXE” ETF: IPOX is pleased to note the launch of the ETF tied to the IPOX 100 Europe (IPOE) in partnership with First Trust Portfolios on Nasdaq U.S. The First Trust IPOX® Europe Equity Opportunities ETF (FPXE) provides investors with exposure to the burgeoning European IPO and Spin-off sector, Europe’s best performing equity sector over the past five years with only minor overlap to the existing benchmarks. Please contact [email protected] to receive further information.

IPOX Price Returns (%) Last Week 2017 2018 YTD
Exposure: Global/International (xUS) (Price)
IPOX® Global (IPGL50) (USD) -3.67 28.59 1.38
IPOX® International (IPXI)* (USD) -4.65 37.80 -5.67
Exposure: United States (Price)
IPOX® U.S. Composite (IPXC)* (USD) -2.82 33.64 5.54
IPOX® 100 U.S. (IPXO)* (USD) -2.79 26.04 6.09
IPOX® 30 U.S. (IPXT) (USD) -1.66 26.63 3.67
Exposure: Europe/Nordic Region (Price)
IPOX® Europe 30 (IXTE) (EUR) -3.42 19.27 0.93
IPOX® Nordic (IPND) (EUR) -4.56 17.91 -1.83
IPOX® 100 Europe (IPOE)* (USD) -3.94 41.77 -3.35
Exposure: Asia-Pacific/China Region (Price)
IPOX® Asia-Pacific (IPTA) (USD) -3.07 23.30 1.83
IPOX® China (CNI) (USD) -7.34 37.67 -11.11
IPOX® Japan (IPJP) (JPY) -2.76 N/A N/A

* Basis for ETPs: FPX US, FPX LN, FPXU FP, FPXI US, TCIP110 IT and CME-traded e-mini IPOX® 100 U.S. Index Futures [Symbol: IPOZ8].

IPO Deal-flow Review & Outlook: Amid turbulent markets, U.S. IPOs continue to leave big “money on the table”. Foreign deals lag anew. Busy week for deals ahead. 10 firms debuted last week across accessible global regions, with the average (median) equally-weighted firm adding +24.16% (+19.20%) based on the difference between the final offering price and Friday’s close. U.S. IPOs (UPWK US, GH US, KOD US, ESTC US) closed the first week with massive gains based on final offer, leaving a combined USD million 447.6 “on the table”. Sentiment abroad remained mixed with most focus on the lackluster debut of luxury car maker Aston Martin (AML LN: -10.53%) in London. At least 13 accessible firms are set to go public this week: Top of the list rank the Frankfurt, Germany, listing of Knorr-Bremse (KBX GR), the century-old brake systems manufacturer and second largest listing in Germany YTD, as well as online furniture seller Westwing (WEW GR), Europe’s Wayfair (W US: -9.97%). Focus amongst firms set to list in the U.S. is on planning software company Anaplan (PLAN US) with ex-Tesla Chief of Accounting as its CFO and FMC’s lithium segment spin-off Livent (LTHM US).

Select IPOs traded (week: 10/01/2018) Domicile
Aston Martin Lagonda Global Ho Britain
Cairo Investment & Real Estate Egypt
Elastic NV United States
Guardant Health Inc United States
Hana Pharm Co Ltd South Korea
Kodiak Sciences Inc United States
Upwork Inc United States
Select IPOs expected (week: 10/08/2018) Domicile
Allogene Therapeutics Inc United States
Anaplan Inc United States
Knorr-Bremse AG Germany
Livent Corp United States
Midea Real Estate Holding Ltd China
Osmotica Pharmaceuticals PLC United States
Westwing Group AG Germany

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