The IPOX® Week, December 30, 2019

  • All IPOX Indexes add to gains towards year-end; IPOX International (ETF: FPXI) and IPOX Europe (ETF: FPXE) record big outperformance.
  • IPO Deal-flow Review & Outlook: U.S. and Europe seasonally slow. Year-end focus on deals across Asia-Pacific.
  • Happy New Year from The IPOX Team

All IPOX Indexes add to gains towards year-end; IPOX International (ETF: FPXI) and IPOX Europe (ETF: FPXE) record big outperformance. Amid stable U.S. yields, a seasonally low volume trade, a re-bound in the EUR and higher U.S. equity risk (VIX: +6.79%), the IPOX Indexes finished post-expiration week with solid gains, with select exposure moving into uncharted territory anew. Significant upside continued to be recorded by the IPOX International (ETF: FPXI) and IPOX Europe (ETF: FPXE), for example, as select exposure surged post-Q4/2019 rebalancing, extending YTD gains to +31.70% and +31.41%, a massive +1234 bps. (ETF: FPXI) and +986 bps. (ETF: FPXE) YTD ahead of their respective benchmarks. In the U.S., the FANG-free IPOX 100 U.S. (ETF: FPX) rose +0.41% to +30.47% YTD, performing better than when compared to U.S. small-caps (RTY: -0.17%), while somewhat lagging the S&P 500 (SPX: +0.58%), benchmark for U.S. large-caps. We also note further gains in the innovative, broad-based IPOX Nordic Core Portfolio (IPND) which rose to +40.00% YTD, now +1712 bps. YTD ahead of the broad Nordic Market. In individual portfolio stocks, upside was recorded by unseasoned special stocks

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

including fertility benefits management company 10/2019 IPO Progyny (PGNY US: +18.73%), China coffee chain operator 05/2019 IPO Luckin Coffee (LK US: +13.20%), German-domiciled global connectivity platform operator 09/2019 IPO Teamviewer (TMV GY: +7.86%), Italian payment processor 04/2019 IPO Nexi (NEXI IM: +4.69%) or Swiss software developer 12/2019 IPO Softwareone Holding (SWON SE: +4.48%), while hard-hit IPOX International (ETF: FPXI) heavyweight Chinese mobile phone maker 09/2018 IPO Xiaomi (1810 HK: +4.10%) continued to recover. Online ridesharing services platform operators 05/2019 IPO Lyft (LYFT US: -4.34%) and 09/2019 IPOX 100 U.S (ETF: FPX) heavyweight UBER (UBER US: -0.92%) recorded losses towards the end of the year.

Select IPOX® Indexes Price Returns (%) Last Week 2018 2019 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 1.06 -11.37 28.95
IPOX® International (IPXI)* (USD) 1.47 -13.41 31.70
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) 0.41 -8.80 30.47
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 1.06 -13.46 35.70
IPOX® Nordic (IPND) 1.34 -15.45 40.00
IPOX® 100 Europe (IPOE)* (USD) 1.44 -16.60 31.41
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 0.96 -3.21 4.39
IPOX® China (CNI) (USD) 1.35 -22.83 26.83
IPOX® Japan (IPJP)** (JPY) 1.60 -13.70 8.12

* 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 (IPOH0). Source: Bloomberg.

IPOX ETFs YTD Performance Update: IPOX 100 U.S. (ETF: FPX): +31.40%, IPOX International (ETF: FPXI): +33.99%, IPOX 100 Europe (ETF: FPXE): +33.38%.

IPO Deal-flow Review & Outlook: U.S. and Europe seasonally slow. Year-end focus on deals across Asia-Pacific. Amid the shortened Christmas trading week, Japanese discount liquor store Kakuyasu (7686 JP: +22.81%) was the only company debuting last week** across the global regions. While the U.S. and European IPO pipeline continues to be quiet into the New Year, four IPOs are lined up in Hong Kong this week with Chinese state-backed provincial lender Bank of Guizhou (6199 HK) concluding the last large offer of the year 2019. Other IPO news last week include: a) Thai conglomerate Central Retail files for the largest Thai IPO ever and expects trading early 2020, b) Chinese e-commerce giant (JD US) plans to spin off its logistics unit, c) sports-betting platform operator DraftKings to go public via a reverse-merger and d) Chinese software veteran Kingsoft (3888 HK) files a confidential IPO for its cloud unit spin-off. A total of 154 firms have “gone public” in the U.S. in 2019, with the average (median) equally-weighted deal recording an initial return of +18.15% (+11.67%). While the number of IPOs has decreased in 2019, significant deals included the IPOs of unicorns Uber (UBER US), Lyft (LYFT US) and the world’s record-breaking IPO of leading oil producer Saudi Aramco (ARAMCO AB).
**term applies.

Track Priced & Upcoming IPOs on

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