The IPOX® Week, December 14th, 2020

  • IPOX Indexes have big week, beat all benchmarks ahead of expiration. IPOX replaces FANGs as IPOX 100 U.S. (ETF: FPX) zooms past Nasdaq-100 (ETF: QQQ) YTD.
  • IPOX ETFs (FPX, FPXI, FPXE) close at weekly all-time Highs.
  • IPOX SPAC (SPAC) soars +4.86% last week.
  • 1999-style initial IPO returns as super “hot” U.S. IPO market continues. More deals lined up ahead of year-end.

IPOX beats all benchmarks ahead of expiration. FANG-free IPOX 100 U.S. (ETF: FPX) zooms past Nasdaq 100 (ETF: QQQ) YTD. Amid continued global COVID 19 vows, the New Generation of equity exposure pooled in IPOX continued to drive the IPOX Indexes into uncharted territory, far outpacing the global benchmarks. Ahead of expiration week, e.g, the FANG-free IPOX 100 U.S. (ETF: FPX), large-cap centric and diversified benchmark for the performance of U.S. domiciled New Listings, added +2.29% to +46.00% YTD, outpacing the S&P 500 (SPX) and Nasdaq 100 (NDX) by +325 bps. and +361 bps., respectively. Strength extended to the IPOX International (ETF: FPXI) and IPOX 100 Europe (ETF: FPXE) with both portfolio closing out the week at all-time Highs.

IPOX® SPAC Index (SPAC): The Index added +4.86% to +38.24% since its July 30 launch, outperforming all benchmarks. SPAC news include 1) 7 SPACs Announced Merger Agreement/LOI include: a) Collective Growth Corp with Israeli self-driving LiDAR startup Innoviz Technologies; b) Forum Merger III with electric van maker Electric Last Mile; c) Silver Spike Acquisition with cannabis listings online marketplace WM Holding (Weedmaps); d) GigCapital3 with vehicle electrification solution developer Lighting eMotors; e) TPG Pace Beneficial Finance with Amsterdam-based EV charging solution company EVBox ; f) Vesper Healthcare Acquisition with skin-treatment provider HydraFacial; and g) Foley Trasimene Acquisition II with Blackstone and CVC-held payment processor Paysafe. 2) 1 SPAC Completed Business Combination include: Trine Acquisition with 3D printing company Desktop Metal (DM). 3) 3 Deals reportedly in talks include: a) supercar manufacturer McLaren; b) EV chassis maker Motiv Power Systems; and c) financial services provider SoFi. 4) 20 new SPACs IPO’d.

Select IPOX® Indexes Price Returns (%) Last Week 2019 YTD
IPOX® Indexes: Global/International
IPOX® Global Super Liquid (IPGL50) (USD) 1.48 27.93 62.49
IPOX® International (IPXI)* (USD) (ETF : FPXI) 1.51 31.37 60.87
IPOX® Indexes: United States
IPOX® Composite (IPXC) (USD) 0.78 24.65 38.97
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 2.29 29.60 46.00
IPOX® ESG (IPXT) (USD) 1.09 40.73
IPOX® SPAC Index (SPAC) (USD) 4.86
IPOX® Indexes: Europe/Nordic
IPOX® 100 Europe (IPOE)* (USD) (ETF: FPXE) 2.03 30.97 29.64
IPOX® Nordic Core (IPND) (EUR) 2.39 38.52 50.12
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) -0.57 4.41 42.50
IPOX® China Core (CNI) (USD) 1.31 26.31 71.07
IPOX® Japan (IPJP)** (JPY) 0.40 7.91 21.58

* 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 (IPOZ0). Source: Bloomberg

IPOX-linked ETFs (FPX, FPXI, FPXE) Movers (Last Month in %):

HELLOFRESH 28.24 NANO-X IMAGING -18.90
CALISEN 25.66 HARMONY BIO -12.52
ZILLOW 18.23 KOOLEARN TECH -11.77
ADAPTIVE BIOTECH 17.31 BIGCOMMERCE -9.73
REDFIN CORP 16.24 BORGWARNER -8.40
PALANTIR TECH 14.05 HELIOS TOWERS -8.19
NEW FORTRESS ENE 13.86 MERCELL -8.05
BILL.COM 13.63 DOCUSIGN -7.29
CHEWY 13.57 SUN* -7.10
WARNER MUSIC 12.14 XP -6.99

IPO Deal-flow Review and Outlook: At least 29 firms IPO’d across the global regions last week, with the average (median) equally weighted deal adding a massive +52.07% (+29.15%) based on the final offer price and respective close. The U.S. saw a big week with home-sharing platform Airbnb (ABNB US: +104.78%), food delivery startup DoorDash (DASH US: +71.57%) and a flurry of biotech IPOs such as Peter Thiel-backed Canadian COVID-19 antibody developer AbCellera Biologics (ABCL US: +194.50%) all surging on above-range offers. Abroad, JD.com’s online healthcare unit JD Health (6618 HK: +72.85%) and Carlyle-backed Brazil private hospital chain Rede D’Or (RDOR3 BZ: +11.19%) debuted strongly, while coal export terminal operator Dalrymple Bay Infrastructure (DBI AU: -18.29%) fell on Australia’s largest IPO YTD. More deals are lined up for this week with U.S. e-commerce platform wish.com/ContextLogic (WISH US) to go public at a $14 billion valuation and Chinese liquid detergent maker Blue Moon (6993 HK) to raise $1.27 billion in Hong Kong. Other IPO news include: 1) European financial services firm Allfund in talks for a potential IPO at €7B+ valuation; 2) Korea’s largest mobile bank and digital lender KakaoBank, online marketplace unicorn ZipRecruiter and Chinese e-cigarette maker RELX Technology prepare for U.S. IPOs.

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

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