The IPOX® Week, April 5th, 2021

  • IPOX® Indexes close shortened trading week with big gains.
  • a) IPOX® 100 U.S. (FPX) rises to +2.69% to +2.59% YTD.
    b)IPOX® International (FPXI) gains +3.37% to-2.93% YTD.
    c)IPOX® 100 Europe (FPXE) adds +2.17% to -1.75% YTD.
  • IPOX® SPAC (SPAC) recovers +0.42% to +0.20% YTD.
  • After busy Q1, IPO sentiment turns mixed. More deals lined up.

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).

Lightspeed Financial Services Group LLC is not affiliated with these third-party market commentators/educators or service providers. Data, information, and material (“content”) are provided for informational and educational purposes only. This content neither is, nor should be construed as an offer, solicitation, or recommendation to buy or sell any securities or contracts. Any investment decisions made by the user through the use of such content is solely based on the users independent analysis taking into consideration your financial circumstances, investment objectives, and risk tolerance. Lightspeed Financial Services Group LLC does not endorse, offer nor recommend any of the services or commentary provided by any of the market commentators/educators or service providers and any information used to execute any trading strategies are solely based on the independent analysis of the user.

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