The IPOX® Week, December 23, 2019

  • IPOX Indexes surge across the board, beat benchmarks during U.S. expiration week. Corporate action-related stocks in focus.
  • IPO Deal-flow Review & Outlook: Asia-Pacific dominates global IPO activity before the holidays. No major IPOs scheduled during the shortened trading week.
  • Happy Holidays from The IPOX Team

IPOX Indexes surge across the board, beat benchmarks during U.S. expiration week. The IPOX Indexes remained the great beneficiaries of the buoyed mood in world equities ahead of Christmas – amid a depressed level of equity risk (VIX: -50.98% YTD) and rising U.S. yields – recording big absolute and relative gains across the board. In the U.S., e.g., the FANG-free, diversified IPOX 100 U.S. (ETF: FPX) surged +2.13% to +29.94% YTD last week, +48 bps. more than when compared to the S&P 500 (SPX), benchmark for U.S. stocks. Non-U.S. domiciled firms surged as well,

IPOX® U.S. 100 Investing with the “FPX” ETF since 2006:

with the IPOX International (ETF: FPXI), IPOX 100 Europe (ETF: FPXE) and IPOX Nordic Core (IPND) extending their relative YTD gains to a massive +1138 bps. (FPXI), +894 bps (FPXE) and +1758 bps. (IPND), respectively. Individual IPOX Portfolio Holdings linked to broader corporate actions outside the pure IPO theme were notable winners last week, including IPO M&A consumer staple IPOX 100 U.S. Holding (ETF: FPX) Conagra Brands (CAG US: +23.57%, benefiting from the integration of former IPOX Holding Pinnacle Foods), IPOX 100 Europe (ETF: FPXE) stock alternative energy play Scatec Solar (SSO NO: +15.19%, after oil company Equinor boosts stake) and social networker IPOX 100 U.S. (ETF: FPX) heavyweight Match Group (MTCH US: +11.06%, after announcing a deal to fully separate from the remaining businesses of IAC). We also note last week’s big divergence in the performance of the “red-hot” European food delivery platform operators: While fund buying further propelled German-based Delivery Hero (DHER GY: +11.58%, which has just bought leading Korean Takeout App Woowa), Dutch domiciled (TKWY NA: -8.48%) sank as UK’s Just Eat (JE/LN: +0.61%) recommended its offer over Financial Prosus (PSX NA: +8.34%). UK-based payments and data processor 05/2019 IPO IPOX 100 Europe (ETF: FPXE) holding Finablr (FIN LN: -19.68%) and Pudong, China-based biotech IPOX International (ETF: FPXI) stock Zai Lab (ZLAB US: -9.43%) ranked at the bottom of the weekly IPOX performance rankings.

Select IPOX® Indexes Price Returns (%) Last Week 2018 2019 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 2.00 -11.37 27.59
IPOX® International (IPXI)* (USD) 2.10 -13.41 29.78
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) 2.13 -8.80 29.94
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 3.26 -13.46 34.29
IPOX® Nordic (IPND) 2.63 -15.45 38.15
IPOX® 100 Europe (IPOE)* (USD) 2.09 -16.60 29.51
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 1.11 -3.21 3.39
IPOX® China (CNI) (USD) 0.81 -22.83 25.15
IPOX® Japan (IPJP)** (JPY) 1.84 -13.70 6.42

* 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.

IPOX-linked ETFs Performance Focus: IPOX 100 U.S. (ETF: FPX): +30.73% YTD, IPOX International (ETF: FPXI): +31.78% YTD, IPOX 100 Europe (ETF: FPXE): +32.40% YTD.

IPO Deal-flow Review & Outlook: Asia-Pacific dominates global IPO activity before the holidays. No major IPOs scheduled during the shortened trading week. At least 13 firms debuted last week**, with the average (median) equally-weighted firm adding +15.97% (+2.29%) based on the difference between the final offering price and Friday’s close. While Thai’s largest distressed assets manager Bangkok Commercial Asset Management (BAM TB: +2.29%) recorded the second largest IPO in Thailand, Japanese mobile infrastructure sharing services provider JTOWER (4485 JP: +137.5%) more than doubled based on final offer on the week, and  Chinese household-appliance maker JS Global (1691 HK: +7.12%) rose on its revived IPO. Amid the holiday-shortened trading week for most exchanges around the world, markets are set to remain quiet with only Japanese liquor store operator Kakuyasu (7686 JP) lined up to commence trading. Other notable IPO news last week include: a) Carlyle-backed specialty chemicals company Atotech filed confidentially for an IPO, b) Thai’s largest industrial conglomerate SCG filed an IPO of its packaging unit, c) Chinese WeWork – Ucommune filed for a U.S. stock market listing, d) Peet’s Coffee to merge with Jacobs Douwe Edberts to form mega coffee company JDE Peet with a potential to conduct an IPO in the United States.
**term applies

Track Priced & Upcoming IPOs on

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