The IPOX® Week, December 9, 2019

  • IPOX Indexes start December trading mixed; IPOX 100 U.S. (ETF: FPX) pressured by renewed volatility in growth stocks.
  • IPOX Nordic (IPND), IPOX International (ETF: FPXI) close trading week at or near all-time Highs.
  • IPO Deal-flow Review & Outlook: Saudi Aramco surpasses Alibaba to be the largest IPO ever, company to IPO amid Saudi oil production cut news; Busy week ahead for global IPOs.

IPOX Indexes start December trading mixed; IPOX 100 U.S. (ETF: FPX) pressured by renewed volatility in growth stocks.  Amid rising U.S. yields, strong U.S. unemployment numbers towards the week-end, continued subdued equity risk (VIX: -46.42% YTD) and renewed volatility in unseasoned high-growth stocks, the IPOX Indexes started December mixed. While in the U.S., the IPOX 100 U.S. (ETF: FPX) fell -1.07% to -26.87% YTD to lag the U.S. benchmarks, strength in China-linked exposure (CNI: +1.49%) propelled select IPOX Indexes focusing on non-U.S. domiciled exposure to further gains with the  IPOX International (ETF: FPXI) extending the YTD lead vs. the International Market to +1006  bps. YTD, while the IPOX Nordic (IPND) finishing the trading week a massive +1930 bps. YTD ahead of the Nordic market, with both portfolios trading at or near all-time closing Highs. Individual China-linked portfolio holding driving the good showing of the IPOX International Returns  (ETF: FPXI)  included  aircraft  leasing  firm

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

Source: Bloomberg L.P.

BOC Aviation (2588 HK: +4.67%), ecommerce platform operator Pinduoduo (PDD US: +4.37%), mobile phone maker Xiaomi (1810 HK: +4.36%), biotech Wuxi Biologics (2269 HK: +3.79%) and IPOX heavyweight Mainland China banking giant Postal Saving Bank of China (1658 HK: +2.76%). In the IPOX 100 U.S. (ETF: FPX), big losses in aforementioned exposure including dental services provider SmileDirectClub (SDC US: -19.06%), security software company CrowdStrike (CRWD US: -12.26%), database maker MongoDB (MDB US: -11.79%), streaming TV services provider Roku (ROKU US: -10.05%) and car vending machine operator Carvana (CVNA US: -9.34%) were unable to be offset by a strong week for electronic signature solutions provider DocuSign (DOCU: +6.12%), IPO M&A drug maker Bristol-Myers-Squipp (BMY US: +5.29%), medical services provider Medpace (MEDP US: +4.49%) and streaming music services platform operator Spotify Technologies (SPOT US: +3.89%), for example.

Select IPOX® Indexes Price Returns (%) Last Week 2018 2019 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) -0.71 -11.37 23.79
IPOX® International (IPXI)* (USD) 0.51 -13.41 25.82
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) -1.07 -8.80 26.87
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) -0.51 -13.46 28.33
IPOX® Nordic (IPND) 1.35 -15.45 33.33
IPOX® 100 Europe (IPOE)* (USD) -0.42 -16.60 24.96
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) -0.43 -3.21 3.21
IPOX® China (CNI) (USD) 1.49 -22.83 22.05
IPOX® Japan (IPJP)** (JPY) -1.46 -13.70 7.59

* 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.

Select IPOX-linked ETF Performance Updates:  ETFs linked to the following IPOX Indexes closed the week, respectively: IPOX 100 U.S. (ETF: FPX): +27.78% YTD, IPOX International (ETF: FPXI): +29.30% YTD, IPOX 100 Europe (ETF: FPXE): +28.00% YTD.

Pricing on Top: Saudi Aramco surpasses Alibaba to be the largest IPO ever, company to IPO amid Saudi oil production cut news: Only 3 firms debuted last week**, with the average equally-weighted deal adding +17.04% based on the difference between the final offering price and Friday’s close. After both Latitude Financial and Property Guru stopped IPO plans last month, Australian payment firm Tyro (TYR AU: +22.91%) debuted solidly. Global deal activity is set to surge this week: Despite multiple setbacks, the Saudi state-owned oil giant Aramco pulled off the world’s biggest IPO in history and will begin trading this week, and set to be well supported by the Saudi oil product cut news towards the week-end. Brazil’s largest broker XP (XP US), business payment software unicorn (BILL US), Chinese insurance giant Ping An fintech unit spin-off OneConnect (OCFT US) are also set to go public this week. Other IPO news last week included: a) real estate developer IWH revives Malaysia’s $1 billion listing plan, b) PE-backed payment processor Shift4 files for confidential IPO, c) FHFA may sell  Fannie Mae and Freddie Mac through an IPO, d) Facebook co-founders’ work management software unicorn Asana reportedly to pursue Direct Listing over an IPO and e) the SEC rejects NYSE plan to expand direct listings.
**term applies

Track Priced & Upcoming IPOs on

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