The IPOX® Week, December 16, 2019

  • Ahead of U.S. Futures and Options expiration week, most IPOX Indexes extend YTD gains, equity risk plunges.
  • IPOX Europe (ETF: FPXE), IPOX International (ETF: FPXI) and IPOX Nordic (IPND) close week at or near all-time Highs.
  • IPO Deal-flow Review & Outlook: World’s largest IPO Saudi Aramco begins trading with strong initial return; Focus on IPO activity across Asia-Pacific.

Ahead of U.S. Futures and Options expiration week, most IPOX Indexes extend YTD gains. Global equities extended their big YTD run as more certainty over a U.S. China trade deal and Brexit triggered a big short covering- and long-positioning rally in the Derivatives-heavy benchmarks ahead of expiration, as equity risk plunged (VIX: -50.31% YTD), the U.S. Dollar weakened and U.S. rates fell. Most IPOX Indexes rallied in sympathy: In the U.S., e.g., the IPOX 100 U.S. (ETF: FPX) added +0.29% to +27.24% YTD, in line with U.S. small-caps, but lagging the S&P 500 (SPX), while abroad, the IPOX International (ETF: FPXI), IPOX Europe (ETF: FPXE) and IPOX Nordic (IPND) closed the week at or new historic highs anew. Asia-focused exposure traded  mixed. Individual IPOX

IPOX® International Investing with the “FPXI” ETF since 2016:

holdings recording notable upside included Berlin-based food ordering platform operator 06/2017 IPO Delivery Hero (DHER GY: +25.36%, after its deal to acquire Korean Takeout App Woowa), IPOX 100 U.S. (ETF: FPX) stock biotech 11/2017 IPO Apellis Pharma (APLS US: +15.38%, after upgrades), China mobile phone maker IPOX International (ETF: FPXI) heavyweight beleaguered 07/2018 IPO Xiaomi Corp. (1810 HK: +11.35%, more follow-through momentum after earnings amid product news) and San Francisco-based personal shopping platform operator 11/2017 IPO Stitch Fix (SFIX US: +7.39%, revenue beat). We note another week of strong upside in IPO M&A big pharma Bristol-Myers Squipp (BMY US: +6.46%, extending its run since the consummation of the buy-out of biotech Celgene on November 11, 2019 to +13.20%). Profit taking pressured unseasoned biotech & health care exposure including medical devices maker Inmode (INMD US: -18.09%), biotech Crispr Therapeutics (CRSP US: +9.69%) and biotech Innovent Biologics (1801 HK: -5.46%), for example.

Select IPOX-linked YTD ETF Performance:  IPOX 100 U.S. (ETF: FPX): +28.02% YTD, IPOX International (ETF: FPXI): +29.20% YTD, IPOX 100 Europe (ETF: FPXE): +29.37% YTD.

Select IPOX® Indexes Price Returns (%) Last Week 2018 2019 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 1.04 -11.37 25.08
IPOX® International (IPXI)* (USD) 1.03 -13.41 27.12
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) 0.29 -8.80 27.24
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 1.34 -13.46 30.05
IPOX® Nordic (IPND) 0.96 -15.45 34.61
IPOX® 100 Europe (IPOE)* (USD) 1.53 -16.60 26.87
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) -0.92 -3.21 2.26
IPOX® China (CNI) (USD) 1.71 -22.83 24.14
IPOX® Japan (IPJP)** (JPY) -2.88 -13.70 4.50

* 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 (IPOZ9). ** Live since 07/18.

IPO Deal-flow Review & Outlook: World’s largest IPO Saudi Aramco begins trading with strong initial return; Focus on IPO activity across Asia-Pacific. At least 21 firms debuted last week**, with the average (median) equally-weighted firm adding +19.78% (+3.20%) based on the difference between the final offering price and Friday’s close. While oil giant Saudi Aramco (ARAMCO AB: +15.00%) topped Alibaba to become the world’s largest IPO on record while surpassing Apple to become the most valuable public company at the same time, Brazilian brokerage XP (XP US: +39.67%) and Billing platform unicorn (BILL US: +77.18%) all debuted strongly. With the U.S. IPO market poised for a slow week, IPO activity across market in Asia-Pacific is set to pick up with Thai’s largest distressed assets manager Bangkok Commercial Asset Management (BAM TB) and Chinese appliance maker JS Global Lifestyle (1691 HK) lined up. Other IPO news last week included: a) PE-backed Accenture spinoff insurtech unicorn Duck Creek files for confidential IPO, b) Thyssenkrupp mulls IPO of its elevator unit, and c) Swedish payment systems solution provider Klarna prepares for an IPO.
**term applies

Track Priced & Upcoming IPOs on

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