Amid declining anxiety over global interest rates with global risk (VIX: -8.00%) setting a YTD low, the IPOX® Indexes returned to form during the shortened global holiday trading week, with all IPOX® Indexes recording significant gains and outperforming their respective benchmarks. In the U.S., e.g., the broad-based, FANG-free IPOX® 100 U.S. (ETF: FPX) added +2.69% to +2.59% YTD, +140 bps. ahead of the S&P 500 (SPX), benchmark for U.S. stocks. Here, 74/100 stocks closed the week in positive territory, with the average (median) equally-weighted portfolio holding adding +2.67% (+2.08%), in line with the applied market-cap weighed IPOX® 100 U.S. (ETF: FPX). On the back of a big recovery in China-linked exposure, strength extended to non-U.S. domiciled exposure tracked in the IPOX® International (ETF: FPXI), surging +3.37% to -2.93% YTD.
Recently added IPOX® Portfolio Holdings led the list of top performers in the IPOX® International (ETF: FPXI), including Hong Kong’s household appliances maker JS Global Lifestyle (1691 HK: +22.63%, after strong quarterly results), German biotech BioNTech (BNTX US: +18.91%, on increasing demand for its Covid Vaccine), Malaysia’s home products stores operator Mr. DIY Group (MRDIY MK: +9.31%, strong numbers reinforce trade at higher multiples) and Saudi’s health care services provider Dr. Sulaiman Al Habib (SULAIMAN AB: +5.75%, rising to a record post IPO-high on renewed optimism about Saudi IPOs). Defensive play, French lottery services operator FDJ (FDJ FP: -3.01) and Australian online wealth management services provider Netwealth (NWL AT: -4.91%) led the list of biggest decliners in the IPOX® International (ETF: FPXI).
Notable moves in the IPOX® 100 U.S. (ETF: FPX) included 10/2020 IPO sporting goods retailer Academy Sports and Outdoors (ASO US: +17.81%), biotech Guardant Health (GH US: +15.80%), social networker Pinterest (PINS US: +12.54%) and online mortgage provider Rocket (RKT US: -5.69%).
|Select IPOX® Indexes Price Returns (%)||2020||Last Week||YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global Super Liquid (IPGL50) (USD)||66.63||3.47||1.00|
|IPOX® International (IPXI) (USD) (ETF : FPXI)||72.15||3.37||-2.93|
|IPOX® Indexes: United States|
|IPOX® Composite U.S. (IPXO)* (USD)||40.77||2.77||0.92|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||47.32||2.69||2.59|
|IPOX® ESG (IPXT) (USD)||42.29||3.15||2.30|
|IPOX® SPAC (SPAC) (USD)**||48.52||0.42||0.20|
|IPOX® EV (IPEV) (USD)||11.02||5.89||0.82|
|IPOX® Indexes: Europe/Nordic|
|IPOX® 30 Europe (IXTE) (EUR)||36.95||2.06||2.95|
|IPOX® 100 Europe (IPOE) (USD) (ETF: FPXE)||35.14||2.17||-1.75|
|IPOX® Nordic Core (IPND) (EUR)||59.89||1.11||8.04|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||47.50||2.83||0.04|
|IPOX® China Core (CNI) (USD)||88.02||5.71||-2.62|
|IPOX® Japan (IPJP)(JPY)||25.75||0.90||1.45|
* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOM1).
IPOX® SPAC Index (SPAC): The Index added +0.42% on the week to +0.20% YTD and +48.83% since its 7/30/2020 launch. SPAC news include: 1) 4 SPACs Announced Merger Agreement/LOI include: a) Union Acquisition II with Colombian pharmaceutical manufacturer Procaps; b) Ajax I with British online used car marketplace Cazoo; c) Qell Acquisition with German air taxi startup Lilium and d) CM Life Sciences II with protein biomarker diagnostics company SomaLogic. 2) 3 SPACs Completed Business Combination include: a) Foley Trasimene Acquisition II with payment company Paysafe (PSFE), b) New Providence Acquisition with satellite cellular broadband company AST SpaceMobile (ASTS expected to trade on 4/6) and c) Replay Acquisition with Finance of America (FOA on 4/5). 3) Only 2 new SPACs launched on shortened trading week.
IPO Deal-flow Review and Outlook: At least 20 IPOs launched across the global markets during the shortened U.S. trading week with the average (median) equally weighted deal adding +13.97% (+12.67%) based on the final offer price and respective Friday (Thursday) close. UK-based food delivery startup Deliveroo (ROO LN: -27.69%) plunged on its long-awaited IPO, while Saudi Arabia based car rental company Theeb Rent A Car (THEEB AB: +36.00%), online courses provider Coursera (COUR US: +38.73%) and SoftBank-backed real estate brokerage Compass (COMP US: +11.94%) gained on debut. Chinese video sharing site Bilibili (9626 HK: +7.67%) also rose on its $2.6B+ “homecoming” secondary listing in Hong Kong. Tencent-backed fintech Linklogic (9959 HK) and Brazilian pharmaceutical company Blau (BLAU3 BZ) are set to launch this week. Other IPO news include: 1) crypto exchange Coinbase set Direct Listing date for April 14th; 2) Geely mulls Volvo IPO; 3) Toshiba/Bain owned Japanese memory chip Kioxia’ s IPO may be back on the table; and 4) UFC owner, entertainment company Endeavor files for IPO (again).
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