The IPOX® Week, August 31st, 2020

  • Most IPOX Indexes surge to close at weekly all-time Highs / IPOX SPAC Index soars +4.78% as deals consummate.
  • IPOX 100 U.S. (ETF: FPX) adds +3.15% to +18.89% YTD. IPOX International (ETF: FPXI) rises +4.26% to +48.09% YTD. IPOX 100 Europe (ETF: FPXE) gains +1.62% to +17.95% YTD.
  • “Hot Pot is hot”: HK’s Haidilao and Yihai soar after earnings.
  • U.S. IPOs set for quiet week. Brazil-domiciled deals in focus.

Most IPOX Indexes surge to close at weekly all-time Highs. The plunge in U.S. bonds and renewed weakness in the U.S. dollar did little to derail the big rally in U.S. and most of China equities, with the IPOX Indexes remaining primary beneficiaries. In the U.S., e.g, the FANG-free, diversified IPOX 100 U.S., underlying for the $1.5 billion “FPX” ETF, added +3.15% to +18.89% YTD, +1041 bps. YTD ahead of the S&P 500 (SPX), benchmark for U.S. stocks. Gains extended to non-U.S. domiciled exposure with big strength in the IPOX China Core (CNI: +6.37%) driving the IPOX International (ETF: FPXI) to a weekly gain of +4.26%, now +48.09% YTD higher.

Non-tech exposure drove some of the renewed good showing in the IPOX International (ETF: FPXI) last week, including HK-traded “hot pot” restaurant operator IPOX heavyweight Haidilao International (6862 HK: +17.98%) and ingredients supplier Yihai International (1579 HK: +19.25%) after earnings, while heavyweights mobile phone maker Apple-of-China Xiaomi (1810 HK: +23.90%) and investment firm Prosus (PRX NA: +7.19%) rallied on earnings and ahead of (perceived) index inclusion. In the IPOX 100 U.S. (ETF: FPX), we note another good week in IPO M&A semiconductor maker Marvell Technologies (MRVL US: +14.32%) on product innovation, while large-pharma and small-mid cap/unseasoned biotech exposure continued to underperform, including Karuna Therapeutics (KRTX US: -7.95%).

Track the performance of U.S. SPACs live with the IPOX® SPAC (BBG: SPAC, Reuters: SPAC): The liquid IPOX SPAC (SPAC) added +4.78% last week, outperforming the S&P 500 (SPX) and Russell 2000 (RTY). SPAC news include: 1) driverless car maker Luminar (merger with Gore Metropoulos) and 3D printing firm Desktop Metal (merger with Trine Acquisition) to go public via SPAC merger; 2) snack maker Utz Quality Foods set to begin trading on Aug 31 with IPOX SPAC (SPAC) portfolio holding Collier Creek merger completed; 3) membership-based private jet operator Surf Air eyes SPAC merger.

Select IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 4.42 27.93 42.52
IPOX® International (IPXI)* (USD) (ETF: FPXI) 4.26 31.37 48.09
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 3.15 29.60 18.89
IPOX® ESG (IPXT) (USD) 4.95
IPOX® SPAC (SPAC) (USD) 4.78
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 0.47 34.55 22.52
IPOX® Nordic (IPND) 1.74 38.52 37.82
IPOX® 100 Europe (IPOE)* (USD) 1.62 30.97 17.95
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 0.29 4.41 30.20
IPOX® China (CNI) (USD) 6.37 26.31 55.30
IPOX® Japan (IPJP)** (JPY) -3.67 37.91 8.46

* 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]

IPOX-linked ETFs (FPX, FPXI, FPXE) Movers (Last Week in %):
XIAOMI CORP 23.90 BIONTECH SE -12.35
YIHAI INTERNATIONAL 19.25 SCHRODINGER INC -10.18
HAIDILAO INTERNATIONAL 17.98 SELECTQUOTE INC -9.4
INARI MEDICAL INC 17.41 MERCARI INC -8.82
MARVELL TECHNOLOGY 14.32 CARDLYTICS INC -8.47
XP INC 14.29 ETSY INC -8.22
WUXI BIOLOGICS CAYMAN 13.40 KARUNA THERAPEUTICS -7.95
BLACKLINE INC 12.92 VIELA BIO INC -7.35
SCATEC SOLAR ASA 12.08 FARFETCH LTD -6.68
ACADEMEDIA AB 11.88 ADAPTIVE BIOTECH -5.62

IPO Deal-flow Review and Outlook: Chinese EV maker Xpeng soars. U.S. IPO market quiet as deal focus is on Brazil. Only 2 firms went public across the global regions last week, with the average equally-weighted deal adding +26.25% based on the difference between offer price and respective Friday’s close. Alibaba and Xiaomi-backed Chinese EV maker Xpeng (XPEV US: +49.20%) and Canadian step-up listing GreenPower Motor (GP US: +3.30%%) both rose on upsized offer following the recent EV stocks rally. With no deals scheduled in the U.S., two IPOs in Brazil are in focus: Drugstore chain Pague Meno (PGMN3 BZ) and real estate developer Lavvi (LAVV3 BZ). Other IPO news Include: 1) a flurry of unicorns are set to debut in Q4, including Sequoia-backed enterprise-software developer Snowflakes, data analytics Palantir, project management software Asana, Epic Games (Fortnite developer) rival Unity, delivery platform DoorDash, payment processor Nuvei, and Airbnb; 2) IPOX International (ETF: FPXI) heavyweight Yum China wins $2B HK listing; 3) Bain-owned Toshiba memory chip maker unit Kioxia launches $3.6B IPO scheduled to list on Oct 6; 4) British e-commerce Hut Group to revive the London IPO market, plans to list on Sep 16; 5) SoftBank-backed German online used-car marketplace Auto1 and Israeli shipping services provider Zim eye IPO.

Track global deal flow live on: https://bit.ly/32zolmG

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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