The IPOX® Week, May 25, 2020

  • FANG-free, diversified IPOX 100 U.S. (ETF: FPX) soars through key technical level.
  • IPOX Europe (ETF: FPXE) portfolio holdings drive IPOX International (ETF: FPXI) to fresh weekly closing high.
  • SelectQuote tops Chinese Kingsoft Cloud to launch the biggest U.S. IPO since COVID-19 pandemic.

FANG-free, diversified IPOX 100 U.S. (ETF: FPX) soars through key technical level. The diversified, FANG-free IPOX 100 U.S. (ETF: FPX) – benchmark for the performance of U.S. IPOs and Spin-offs – rose for a 3rd consecutive week last week, adding +3.04% to -2.82% YTD, +571 bps. YTD ahead of the S&P 500 (SPX), benchmark for U.S. stocks. Amid declining equity risk (VIX: -12.37%) and a bid in U.S. yields, big short covering in the derivates-heavy benchmarks after U.S. monthly options expiration helped the IPOX 100 U.S. (ETF: FPX) to push through key technical resistance (3412.18) early in the week to close at 3493.35. 75/100 portfolio holdings rose, with the average (median) equally-weighted stock adding +5.07% (+3.92%), outperforming the applied market-cap weighted index and underlying the breath of last week’s strength.

IPOX 100 Europe (ETF: FPXE) portfolio holdings drive IPOX International (ETF: FPXI) to another weekly closing high. In IPOX Markets abroad, the selling wave in China-linked exposure with the IPOX China Core (CNI) dropping -2.72% to +9.35% YTD towards the weekend was not enough to derail the positive momentum in the IPOX International (ETF: FPXI). The portfolio added +2.04% to +10.62% YTD last week, another weekly all-time high. In the cross-section, outsized returns of IPOX Europe 100 (ETF: FPXE) portfolio holdings – including exposure to the Nordic region –

European IPOs drive IPOX International Returns (ETF: FPXI):

drove much of the strong showing, including European payment processors Adyen (ADYEN NA: +15.49%) and Nexi (NEXI IM: +8.06%), Sweden’s technology firms Sinch (SINCH SS: +12.14%) and Evolution Gaming (EVO SS: +9.23%), as well as Siemens spin-off medical instruments maker Siemens Healthineers (SHL GY: +9.97%) which finished the week at a weekly post-IPO high. Exposure outside Europe traded mixed, with gains in Singapore-domiciled software maker Sea (SE US: +27.50%) after earnings and Brazil-traded exposure balanced out by declines in most China-linked stocks. This included health care firms Wuxi Biologics (2269 HK: -7.11%), Ping An Healthcare (1833 HK: -10.51%), and real estate developer Poly Property (6049 HK: -10.45%), e.g.

Long-only IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 3.08 27.93 8.92
IPOX® International (IPXI)* (USD) (ETF: FPXI) 2.04 31.37 10.62
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 3.04 29.60 -2.82
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 5.35 34.55 13.89
IPOX® Nordic (IPND) 7.87 38.52 12.70
IPOX® 100 Europe (IPOE)* (USD) 4.49 30.97 1.08
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 2.11 4.41 4.27
IPOX® China (CNI) (USD) -2.72 26.31 9.35
IPOX® Japan (IPJP)** (JPY) 5.02 37.91 -7.18

* Basis for ETFs: FPX US, FPX LN, FPXE US, FPXU FP, FPXI US, TCIP110 IT and CME-traded e-mini IPOX® 100 U.S. Futures (IPOM0). Source: Bloomberg L.P. & Refinitiv/Thomson Reuters. For IPOX Alternative Strategies Returns, please contact [email protected]

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IPOX-linked ETFs (FPX, FPXI, FPXE) Movers (Last Week in %):
SEA LTD 27.50 MYOKARDIA -11.66
APPIAN 21.41 ZAI LAB -9.63

IPO Deal-flow Review and Outlook: SelectQuote tops Chinese Kingsoft Cloud to launch the biggest U.S. IPO since COVID-19 pandemic; Inari and Kintor continue hot biotech IPO streak. 3 sizable IPOs started trading across the global regions last week with the average equally-weighted deal adding +54.71% based on the difference between the final offering price and their respective Friday’s close. Insurance comparison firm SelectQuote (SLQT US: +33.7%) and commercial-stage medical device company Inari (NARI US: +123.74%) both soared in the U.S., while oversubscribed biotech Kintor Pharma (9939 HK: +6.70%) rose in Hong Kong. Amid strong demand, German analytics database firm Exasol (EXL GR) is set to trade this week, while no IPOs are scheduled during the holiday week in the U.S. Other IPO news include: 1) JAB coffee unit JDE Peet’s unveils $2 billion Amsterdam IPO. 2) South Korea’s SK Holdings plans to list its drug R&D subsidiary SK Biopharmaceuticals, projected to be the biggest IPO in Korea since 2017. 3) payment services provider IPO wave returns with Tencent-backed Yeahka and Shift4 Payments. 4) Nasdaq to tighten IPO rules for small firms.

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