The IPOX® Week, September 24, 2018

  • Asia-focused IPOX exposure records big weekly upside / IPOX 100 U.S (IPXO) lags ahead of quarter-end.
  • IPOX Global Microsector Focus: Health Clubs & Fitness.
  • IPO Deal-flow Review & Outlook: Elanco (ELAN US), Meituan Dianping (3690 HK) rise during first week of trading. U.S. readies more IPOs. Chinese hotpot chain Haidilao (6862 HK), Japans World Co (3612 JP) line up.

Asia-focused IPOX exposure records big weekly upside / IPOX 100 U.S (IPXO) lags ahead of quarter-end. Amid higher U.S. rates, continued uncertainty over trade and U.S. Futures & Option expiration, the IPOX Indexes traded mixed last week. While there was significant upside in the portfolios tracking non-U.S. domiciled exposure, including the IPOX Asia-Pacific (IPTA), IPOX China (CNI) and IPOX Japan (IPJP), the IPOX U.S. Indexes (IPXC, IPXO, IPXT) lagged the S&P 500 (SPX) – benchmark for U.S. stocks – reversing the previous week’s strong relative gains. Notable upside in larger-sized China-linked exposure, for example, belonged to educational services provider China Education Group (839 HK), biotech Wuxi Biologics (2269 HK: +10.28%) or China Vanke (2202 HK: +8.56%), while higher rates and strong economic data also propelled key IPOX Japan (IPJP) holdings Financials Japan Post Insurance (7181 JP: +6.97%) and Japan Post Bank (7172 JP: +5.33%), as well as logistics services provider SG Holdings (9143 JP: +4.68%) and leading global professional services firm owner “red hot” Recruit Holdings (6098 JP: +4.10%). Amid profit taking after downgrades, revised outlooks, as well as perceived negative legal actions, firms including personal shopping platform operator Stich Fix (SFIX US: -18.02%), German online fashion retailer Zalando (ZAL GY: -16.67%) or IL-based drug maker AbbVie (ABBV US: -3.57%) finished the week with the significant losses.

IPOX Global Microsector Focus: Health Clubs & Fitness IPOs. Amid active M&A in the industry, we note the big post-IPO gains in IPOX holdings U.S.-based health club operator Planet Fitness (PLNT) and Dutch-based Basic Fit (BFIT NA), as well as Italian Fitness equipment maker Technogym (TGYM IM), on top of generational growth firms Nike (NKE) and Adidas (ADS GY).

IPOX Price Returns (%) Last Week 2017 2018 YTD
Exposure: Global/International (xUS) (USD) (Price)
IPOX Global (IPGL50) 0.97 28.59 5.31
IPOX International (IPXI)* 2.13 37.80 -0.37
Exposure: United States (USD) (Price)
IPOX U.S. Composite (IPXC)* -0.10 33.64 9.01
IPOX 100 U.S. (IPXO)* -1.32 26.04 9.64
IPOX 30 U.S. (IPXT) -1.02 26.63 5.99
Exposure: Europe/Nordic Region (EUR) (Price)
IPOX Europe 30 (IXTE) 0.41 19.27 4.20
IPOX Nordic (IPND) 0.57 17.91 2.59
Exposure: Asia-Pacific/China Region (USD) (Price)
IPOX Asia-Pacific (IPTA) 2.91 23.30 5.13
IPOX China (CNI) 4.07 37.67 -2.65
IPOX Japan (IPJP) 3.75 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: Elanco (ELAN US), Meituan Dianping (3690 HK) rise during first week of trading. U.S. readies more IPOs. Chinese hotpot chain Haidilao (6862 HK), Japans World Co (3612 JP) line up. Amid huge moves in some of the most recent U.S. IPOs including cannabis producer Tilray (TLRY US: +12.95%), eight accessible firms debuted last week across global regions, with the average (median) equally-weighted firm adding a massive +24.04% (+23.37%) based on the difference between the final offering price and Friday’s close. Most upside focus was again on firms going public in the U.S., including Eli Lilly’s (LLY US: +0.50%) animal health spinoff Elanco (ELAN US: +43.38%), ticketing company Eventbrite (EB US: +48.91%), luxury fashion marketplace Farfetch (FTCH US: +42.25%) and upsized pediatric cancer biopharma Y-mAbs Therapeutics (YMAB US: +50.00%). After pricing towards the top of the range, focus in the H.K. market was on China’s e-commerce firm Meituan Dianping (3690 HK: +4.49%), making it the 5th largest IPO globally YTD. Uganda’s Cipla Quality Chemicals (CQCIL US: +2.14%) added to Africas YTD deal flow, making it the first IPO in Uganda since 2012. More companies are expected to start trading in the U.S. and abroad this week. Top of the list ranks Salesforce (CRM US: -1.31%)-backed online survey company SurveyMonkey (SVMK US), followed by a slew of other U.S. small-caps across industries, including biotech Yale University-linked Arvinas Holding (ARVN US). Outside the U.S., USD billion 1 IPO Chinese hotpot chain Haidilao (6862 HK) and Tokyo-traded apparels manufacturer World Co. (3612 JP) and Financial SBI (7326 JP) are lined up.

Select IPOs traded (week: 09/17/2018) Domicile
Cipla Quality Chemicals Industries Ltd Uganda
Elanco Animal Health Inc United States
Eventbrite Inc United States
Farfetch Ltd Britain
Meituan Dianping China
X Financial China
Y-mAbs Therapeutics Inc United States
Select IPOs expected (week: 09/24/2018) Domicile
Arco Platform Brazil
Arvinas Holding Company LLC United States
Haidilao International Holding China
Laix Inc. China
SBI Insurance Group Co Ltd Japan
SVMK Inc United States
Urovant Sciences Inc. Britain
World Co Ltd Japan

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