The IPOX® Week, December 7th, 2020

  • IPOX SPAC (SPAC) jumps +8.61% on deal speculation, tops IPOX Indexes weekly performance ranking.
  • IPOX ETFs (FPX, FPXI, FPXE) close at fresh all-time Highs.
  • It is a super “hot” U.S. IPO market as initial returns of U.S. deals far exceed deals “going public” abroad. DoorDash (DASH US) and Airbbnb (ABNB US) lined up.

IPOX ETFs close at fresh all-time Highs. The IPOX Indexes followed the relentless strength in the European and U.S. benchmarks, with respective exposure closing out the trading week at their highest level on record. In the U.S., e.g., the FANG-free IPOX 100 U.S. (ETF: FPX) added +1.51% to +42.74% YTD, +2824 YTD ahead of the S&P 500 (SPX) YTD. Abroad, amid big dollar weakness and profit taking in select Asia-Pacific-domiciled exposure, the IPOX International (ETF: FPXI) added +0.83% to +58.48% YTD, while the IPOX 100 Europe (ETF: FPXE) rose +1.81% to +27.06% YTD, all a fresh record. Strong post-earnings momentum and more corporate action speculation drove some of the solid showing, including software makers Zscaler (ZS US: +20.71%), Oak Street Health (OSH US: +17.56%), CrowdStrike (CRWD US: +10.89%) and DocuSign (DOCU US: +7.21%), while biotech Denali (DNLI US: +18.56% / Biogen), online luxury fashion mall operator “off-white” owner Farfetch (FTCH US: +6.62%/ Alibaba) and Swedish personal messaging services provider Sinch (SINCH SS: +7.12% / Softbank) continued to benefit from more perceived stake building. Profit taking in U.S. medical devices maker IRhythm (IRTX US: -22.69%), collaborations software maker Zoom Video (ZM US: -13.06%) or Japans logistics services provider SG Holdings (9143 JP: -5.42%) weighed on performance.

IPOX SPAC (SPAC) Update: The Strategy added +8.61% to +31.83% since its July 30 live launch. SPAC news include 1) 4 SPACs Announced Merger Agreement/LOI include: a) Star Peak Energy Transition with clean energy storage company Stem; b) Altimar Acquisition with alternative asset management companies Dyal and Owl Rock; c) CF Finance Acquisition II with smart window company View; and d) Northern Genesis Acquisition with Canadian electric truck and bus manufacturer Lion Electric. 2) 1 SPAC Completed Business Combination include: Gores Metropoulos with autonomous vehicle sensor maker Luminar Technologies (LAZR). 3) 2 SPACs reportedly in talks include: a) Collective Growth Corp with Israeli self-driving LiDAR sensor startup Innoviz; and b) Tuscan Holdings II and freight marketplace startup Transfix. 4) 10 new SPACs IPO’d.

Select IPOX® Indexes Price Returns (%) Last Week 2019 YTD
IPOX® Indexes: Global/International
IPOX® Global Super Liquid (IPGL50) (USD) 0.66 27.93 60.13
IPOX® International (IPXI)* (USD) (ETF : FPXI) 0.83 31.37 58.48
IPOX® Indexes: United States
IPOX® Composite (IPXC) (USD) 0.66 24.65 37.89
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 1.51 29.60 42.74
IPOX® ESG (IPXT) (USD) 0.35 39.22
IPOX® SPAC Index (SPAC) (USD) 8.61
IPOX® Indexes: Europe/Nordic
IPOX® 100 Europe (IPOE)* (USD) (ETF: FPXE) 1.81 30.97 27.06
IPOX® Nordic Core (IPND) (EUR) -0.12 38.52 46.62
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) -0.70 4.41 43.32
IPOX® China Core (CNI) (USD) -1.90 26.31 68.86
IPOX® Japan (IPJP)** (JPY) -2.11 7.91 21.10

* 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 %):
CRISPR THERAPEUTICS 21.38 IRHYTHM TECH -22.69
ZSCALER INC 20.71 APPIAN CORP -22.00
DENALI THERAPEUTICS 18.56 PALANTIR TECHN. -13.77
OAK STREET HEALTH INC 17.56 ZOOM VIDEO -13.06
SPOTIFY TECHNOLOGY SA 15.18 MERCELL HOLDING AS -11.75
RINGCENTRAL INC 13.68 SPROUT SOCIAL INC -9.77
QUILTER PLC 11.58 TOPBUILD CORP -8.71
CROWDSTRIKE HOLDINGS 10.89 SMILEDIRECTCLUB INC -8.29
MEDPACE HOLDINGS INC 10.70 ORSTED A/S -8.08

IPO Deal-flow Review and Outlook: At least 20 firms IPO’d across the global markets last week, with the average (median) equally weighted deal adding +33.56% (+17.65%) based on the difference between the final offer price and respective close. The largest 3 IPOs of the week traded mixed: While China Evergrande’s property management spinoff Evergrande Services (6666 HK: -0.11%) fell on its Hong Kong debut, UK reinsurer Conduit (CRE LN: +1.50%) only slightly rose, while Macquarie-backed data analytics software company Nuix (NXL AU: +50.85%) surged on Australia’s largest IPO in two years. The U.S. saw more biotech IPOs with proteome-analysis company Seer (SEER US: +197.16%) and precision oncology company Kinnate Biopharma (KNTE US: +117.30%) more than doubling. A flurry of high-profiled unicorns are set to debut this week, led by food delivery platform operator DoorDash (DASH US), vacation rental online marketplace Airbnb (ABNB US) and JD.com’s digital health-care unit JD Health (6618 HK). Brazil’s largest private hospital operator Rede D’Or (RDOR3 BZ) and Chinese property management China Resources Mixc Lifestyle (1209 HK) are also readying billion-dollar IPOs. Other IPO news include: 1) online education provider Coursera weighs IPO; and 2) buy-now-pay-later company Affirm, CVC-acquired pet supply retailer Petco and Germany Home24’s Brazilian subsidiary Mobly filed for IPO.

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

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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