The IPOX® Week, September 17, 2018

  • IPOX 100 U.S. tops weekly U.S. Equity Indexes performance rankings with +2.24% gain. Other IPOX Indexes gain strongly, too.
  • IPO Deal-flow Review & Outlook: Big week for global IPOs ahead: H.K. readies its second largest tech offering ever Meituan Dianping (3690 HK). Eli Lilly’s animal health unit Spin-off Elanco (ELAN US) set for NYSE debut.

IPOX 100 U.S. tops weekly U.S. Equity Indexes performance rankings with +2.24% gain. Other IPOX Indexes gain strongly, too. Other IPOX Indexes gain strongly, too. Ahead of quarterly U.S. Futures & Options expiration, the diversified IPOX 100 U.S. (IPXO) rose strongly, adding +2.24% to +11.11% YTD, outpacing the S&P 500 (SPX) – benchmark for U.S. stocks – by +108 bps. last week. Big gains in specialty holdings including social networker Match Group (MTCH US: +14.22%), online furniture retailer Wayfair (W US: +12.07%), as well as more heavily weighted corporate action related portfolio stocks such as industrial United Rentals (URI US: +11.30%) and drug maker Shire (SHPG US: +6.63%) contributed to the strong relative and absolute showing. In the IPOX 100 U.S., (IPXO) firms announcing secondary share sales ranked towards the bottom of the weekly performance rankings, including alternative asset manager Hamilton Lane (HLNE US: -3.85%) and just recently issued application software maker DocuSign (DOCU US: -5.53%). While the IPOX China (CNI) declined marginally, strong sentiment extended to IPOX exposure in Markets traded outside the U.S., including the IPOX Europe (IXTE), IPOX Asia-Pacific (IPTA) and IPOX Japan (IPJP). Focus in individual holdings was on payment processor Amsterdam-traded Adyen (ADYEN NL: -4.62%) which declined after setting terms of a large secondary offering, set to increase liquidity and eligibility for inclusion into the broad European benchmarks.

Select IPOX-linked Investment Products Performance Update: The USD billion 1.3 IPOX 100 U.S. (IPXO)-linked First Trust U.S. Equity Opportunities ETF (FPX) rose +2.28% to +11.48% YTD, while its international counterpart (FPXI) recovered to –1.48% YTD last week. Amongst the range of actively managed IPOX-linked long-only products, the Catalyst IPOX® Allocation Fund (OIPAX) surged +2.41% to +17.00% YTD last week, a fresh lifetime high.

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) 2.17 28.59 4.23
IPOX International (IPXI)* 2.13 37.80 -2.57
Exposure: United States (USD) (Price)
IPOX U.S. Composite (IPXC)* 1.66 33.64 9.11
IPOX 100 U.S. (IPXO)* 2.24 26.04 11.11
IPOX 30 U.S. (IPXT) 2.34 26.63 7.08
Exposure: Europe/Nordic Region (EUR) (Price)
IPOX Europe 30 (IXTE) 1.51 19.27 3.80
IPOX Nordic (IPND) 1.51 17.91 2.01
Exposure: Asia-Pacific/China Region (USD) (Price)
IPOX Asia-Pacific (IPTA) 2.48 23.30 2.14
IPOX China (CNI) -0.31 37.67 -6.46
IPOX Japan (IPJP) 1.75 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: IPOZ8].

IPO Deal-flow Review & Outlook: Big week for global IPOs ahead: H.K. readies its second largest tech offering ever Meituan Dianping (3690 HK). Eli Lilly’s animal health unit Spin-off Elanco (ELAN US) set for NYSE debut. At least 8 (non-China A shares and non-local India) companies debuted last week across accessible global regions, with the average (median) equally-weighted firm adding a massive +47.16% (+44.65%) based on the difference between the final offering price and Friday’s close. In the U.S., e.g., Tencent-backed Chinese EV producer NIO (NIO US: +58.31%) – priced near the low end – surged from its IPO in huge volume, making it one of the best performers of last week. Upsized biopharma company Principia (PRNB US: +92.06%) and another Tencent-backed firm, Chinese content provider Qutoutiao (QTT US: +128.14%) also recorded strong initial returns. More high-profile deals are on the global IPO calendar this week including Eli Lilly’s animal health unit spin-off Elanco Animal Health (ELAN US), London-based luxury fashion marketplace platform Farfetch (FTCH US), ticketing company Eventbrite (EB US), and Chicago-based steel pipe and tube manufacturer Zekelman (ZEK US). All eyes abroad are on the IPO of “Chinese’s app for everything” Meituan Dianping (3690 HK). Priced close to the high-end, the firm raised $4.2 billion, making it the 2nd largest tech IPO in the H.K. market ever, and giving the firm a USD billion 48 value.

Select IPOs traded (week: 09/10/2018) Domicile
111 Inc China
Hua Medicine China
NIO Inc China
Principia Biopharma Inc United States
Qutoutiao Inc China
Select IPOs expected (week: 09/17/2018) Domicile
Elanco Animal Health Inc United States
Eventbrite Inc United States
Farfetch Ltd Britain
Meituan Dianping China
Y-mAbs Therapeutics Inc United States
Zekelman Industries Inc United States

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