Muted global risk (VIX: -2.64%) and falling U.S. yields amid strong earnings and big corporate actions activity provided the backdrop for last week’s solid gains across most of the IPOX® Indexes universe. In the U.S., e.g., the IPOX® 100 U.S. – benchmark for U.S. New Listings performance and underlying for the USD 2.1 BN “FPX” ETF – added +1.11% to +7.18% YTD, in line with the well-bid broad benchmarks. Abroad, more weakness across China-linked exposure did little to derail a good week for the IPOX® International, tracked by the USD 1.2 BN “FPXI” ETF, adding +0.81% to -1.36% YTD last week. Despite more declines in high-profile recent London-traded food delivery platform operator Amazon-backed Deliveroo (ROO LN: -35.78% based on its final IPO price set on 03/31), the IPOX® 100 Europe – unique growth index covering European domiciled companies trading in Europe and abroad – continued to shine, with the associated “FPXE” ETF extending its gain to +59.84% since launch, a massive +2948 bps. ahead of its benchmark. Here, we note an all-time high in the IPOX® Nordic (IPND), a sub-portfolio.
IPOX® 100 Europe ETF (ETF:FPXE) eyes fresh all-time high:
In the U.S., individual IPOX® portfolio holdings in focus included medical research provider PPD (PPD US: +20.81%) which soared after serial IPO acquirer medical devices maker and IPOX® member Thermo Fisher Scientific (TMO US: +2.93%) announced a takeover of the company on Thursday. We also note a big week for Dell Technologies (DELL US: +8.03%) on VM Ware (VMW US: +5.79%) spin-off news. In non-U.S. domiciled exposure, IPOX® International (ETF: FPXI) and IPOX® 100 Europe (ETF: FPXE) member Germany-domiciled biotech 10/2019 IPO BioNTech (BNTX US: +24.07%) surged to set a post-IPO high into the weekend, driven by optimism over its ability to meet increasing global demand for its Covid-19 vaccine.
|Select IPOX® Indexes Price Returns (%)||2020||Last Week||YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global Super Liquid (IPGL50) (USD)||66.63||0.55||2.77|
|IPOX® International (IPXI) (USD) (ETF : FPXI)||72.15||0.81||-1.36|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||47.32||1.11||7.18|
|IPOX® ESG (IPXT) (USD)||42.29||1.52||5.67|
|IPOX® SPAC (SPAC) (USD)**||48.52||-3.37||-2.17|
|IPOX® Indexes: Europe/Nordic|
|IPOX® 100 Europe (IPOE) (USD) (ETF: FPXE)||35.14||2.38||3.23|
|IPOX® Nordic Core (IPND) (EUR)||59.89||3.26||16.41|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||47.50||-0.04||2.04|
|IPOX® China Core (CNI) (USD)||88.02||-1.64||-6.97|
|IPOX® Japan (IPJP)(JPY)||25.75||0.12||3.27|
* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOM1).
IPOX® SPAC Index (SPAC): The Index fell -3.37% to -2.17% YTD and +45.31% since its 7/30/2020 launch with SPAC sentiment hit by big declines in consummated SPACs, including Virgin Galactic (SPCE US: -20.32%), Nikola (NKLA US: -14.22%) and QS (QS US: -22.37%). SPAC news include: 1) 5 SPACs Announced Merger Agreement/LOI include (partially): a) Altimeter Growth with SoftBank-backed South East Asia’s largest ride-hailing giant Grab in now world’s biggest SPAC deal; b) D8 Holdings with Bill Gates-backed surgical robotics company Vacarious Surgical; and c) Roth CH II with independent music company Reservoir Media. 2) Deals reportedly in talks include: a) Thayer Ventures Acquisition with luxury travel startup Inspirato; b) D & Z Media Acquisition with advertising platform Simplifi; c) PTK Acquisition with Israeli chipmaker Valen Semiconductors; and d) Alkuri Global Acquisition with UK-based healthcare startup Babylon. 3) SPAC issuance slowed down with only 2 new SPACs launched last week.
IPO Deal-flow Review and Outlook: 12 IPOs launched across the global markets last week with the average (median) equally weighted deal adding +21.28% (+21.75%) based on the final offer price and respective Friday’s close. Direct listing crypto exchange Coinbase (COIN US: +36.80%), now an IPOX® 100 U.S. (ETF FPX) member, soared from a rather low reference price. Other larger IPOs traded mixed with mobile app monetization platform AppLovin (APP US: -23.75%) and self-driving truck startup TuSimple (TSP US: -0.12%) disappointing, while healthcare platform Agilon Health (AGL US: +30.43%) jumped. Delayed Brazilian pharma Blau (BLAU3 BZ), Robotic automation vendor UiPath (PATH US) and European fund distributor Allfunds (ALLFG NA) are lined up for this week. Other IPO news include: 1) web designer Squarespace opts for Direct Listing; 2) ThaiBev deferred its Brewery spin-off in Singapore; 3) Douyin (Chinese TikTok) is close to IPO; and 4) Koreas KakaoBank files for IPO.
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