The IPOX® Week, August 9th, 2021

  • Earnings propel most IPOX® to strong August start. IPOX® Europe (ETF: FPXE) extends weekly streak to 4.
  • IPOX® International (ETF: FPXI) jumps +2.00%. IPOX® 100 U.S. (ETF: FPX) adds +1.37%, outperforms.
  • IPOX® SPAC declines by -0.62% to +37.98% since July 2020 start. 7 deals launched in the U.S. last week.
  • Brisk IPO activity as focus shifts to deals abroad. Korea’s Krafton and Brazil’s Oncoclinicas lined up.

WEEKLY Summary: The IPOX® Indexes started August with strong gains, underpinned by good average earnings and big momentum in the Developed Markets benchmarks. In the U.S., e.g., the IPOX® 100 U.S. (IPXO), underlying for the $2.2 billion “FPX” ETF, added +1.37% to +8.84% YTD, +43 bps. ahead of the S&P 500 (ETF: SPY), benchmark for U.S. stocks. Strength extended to markets abroad. Here, further declines in hard-hit China-linked exposure did little to derail a strong rally in the IPOX® International (IPXI), underlying for the $1.3 billion “FPXI” ETF, adding +2.00% to -1.92% YTD, +104 bps. ahead of its benchmark. We also note further gains in the IPOX® Europe (ETF: FPXE). The benchmark for European domiciled IPOs, Spin-offs and IPO M&A trading across the world regions and most innovative proxy for European growth added +1.13% to +11.35% YTD, also well ahead of its benchmark.

IPOX® EUROPE Investing with the “FPXE” ETF since 2018

IPOX® portfolio holdings in focus: With earnings season in full swing and more corporate actions activity, there was wide distribution in individual IPOX® portfolio returns. Top of the list must rank 2018 Spin-off U.S-traded Veoneer (VNE US:  +23.53%), a holding in the IPOX® 100 Europe (ETF: FPXE). The Swedish auto parts maker surged anew after no other than U.S. semiconductor devices maker Qualcomm (QCOM US: -2.33%) entered the bidding war for the company. Last week also saw fresh post-IPO highs in IPOX® International (ETF: FPXI) portfolio holdings German Covid-19 vaccine maker BioNTech (BNTX US: +18.47%), Brazil’s pet product retails Pet Center Comercio (PETZ3 BZ: +15.37%), Canada’s infrastructure software maker Lightspeed POS (LSPD CN: +14.31%) and Saudi Arabia’s medical services group Dr. Sulaiman Al Habib (SULAIMAN AB: +9.68%). U.S. domiciled exposure tracked in the IPOX® 100 U.S. (ETF: FPX) recording significant upside included biotech Maravai LifeSciences (MRVI US: +22.31%), social media software maker Sprout Social (SPT US: +18.18%), retailer Albertsons Cos. (ACI US: +13.70%) and IPO M&A real estate firm Jones Lang LaSalle (JLL US: +13.11%). U.S. biofacturing company 04/2021 IPO Zymergen (ZU US: -64.56%), Israel’s online marketplace operator Fiverr International (FVRR US: -32.30%) and Sweden’s video game developer Embracer (EMBRACB SS: -15.13%) led the list of worst performing IPOX® portfolio holdings last week.

Select IPOX® Indexes Price Returns 2020 Last WEEK YTD
IPOX® Indexes: Global/International
IPOX® Global Super Liquid (IPGL50) (USD) 66.63 1.86 2.50
IPOX® International (IPXI) (USD) (ETF: FPXI) 72.15 2.00 -1.92
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 47.32 1.37 8.84
IPOX® ESG (IPXT) (USD) 42.29 2.70 13.52
IPOX® SPAC (SPAC) (USD) 48.52 -0.62 -7.11
IPOX® Indexes: Europe/Nordic
IPOX® Europe (IPOE) * (USD) (ETF: FPXE) 35.14 1.13 11.35
IPOX® Nordic Core (IPND) (EUR) 59.89 0.50 24.69
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 47.50 0.20 -1.53
IPOX® China Core (CNI) (USD) 88.02 -2.12 -24.53
IPOX® Japan (IPJP) (JPY) 25.75 0.54 7.17

* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOU1). *also available In UCITS format in Europe in EUR (EPFX IM,), USD (IPXE LN), and GBP (FPX LN).

IPOX® SPAC INDEX (SPAC):  The Index fell -0.62% to -7.11% YTD and +37.98% since its 7/30/2020 launch. SPAC news include: 1) 5 SPACs Announced Merger Agreements: a) CM Life Sciences III with biotech EQRxb) Growth Capital with lidar maker Cepton Technologies and c) FTAC Hera Acquisition with fintech Pico Quantitative Trading2) 4 SPACs Approved Business Combinations such as: a) Reinvent Technology Partners Z with insurtech Hippo (HIPO); b) Gores Holdings V with Ardagh Group metal packing unit Ardagh Metal Packaging (AMBP) and c) Reinvent Technology Partners with electric vertical aircraft manufacturer Joby Aviation (JOBY: 8/10). 3) SPACs reportedly in talk: a) Gores Holdings VII with plant-based fiber packaging maker Footprint and b) Sandbridge X2 with rowing machines maker Hydrow4) 7 new SPACs launched last week in the U.S.

GLOBAL Deal-flow Review and Outlook:   11 IPOs launched globally with the average EW deal adding +23.96%. Most IPOs rose with three billion-dollar offers abroad, including South Korea’s first digital bank KakaoBank (323410 KS: +78.97%), Indonesia e-commerce giant Bukalapak (BUKA IJ: +24.71%) and Shell-Cosan joint venture biofuel company Raizen (RAIZ4 BZ: -4.05%), Brazil’s biggest listing YTD. The U.S. market slowed down with four postponed offers. Amid its 60% downsized offer, PE-backed grill maker Weber (WEBR US: +29.07%) recorded a solid first week of trading. Korean games developer Krafton (259960 KS) and Goldman Sachs-backed Brazilian medical care provider Oncoclinicas (ONCO3 BZ) are scheduled to trade this week. Chinese EV maker Li Auto (2015 HK) is also set for its home-coming Hong Kong secondary listing. Other IPO news include: a) HCI Group subsidiary insurtech TypTap filed confidently and b) data analytic vendor SAS Institute rumored to plan IPO after sale talk with Broadcom (AVGO US: +0.00%) ended in July.

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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