IPOX® Strategies record massive gains: A plunge in equity risk (VIX: -36.93%) amid higher U.S. rates, supported by solid U.S. earnings and continued China-strength provided a powerful backdrop for yet another week of gains for the IPOX® Strategies. Amongst individual countries, top of the list ranked the IPOX® 100 U.S. (ETF: FPX), key all-cap momentum proxy for the performance of U.S. IPOs and Spin-offs, adding +7.95% to +11.85% last week, outpacing the S&P 500 (SPX) by a big +330 bps. A huge week for select specialty exposure after exceptional earnings drove the jump, including applications software maker Bill.com (BILL US: +51.53%)
and Dynatrace (DT US: +33.61%). After recording a blockbuster Q3, buying continued for social networker heavyweight Snap Inc. (SNAP US: +20.21%) after posting solid Q4 results. Abroad, the IPOX® International (ETF: FPXI) added +6.67% to +7.99% YTD, outpacing its benchmark by +376 bps. last week. Here, Nordic exposure was in focus with video games maker Embracer Group (EMBRACB SS: +27.46%) surging after a corporate action and Nordic online wealth management platform operator Nordnet (SAVE SS: +21.55%) propelled strong earnings and upgrades. We
also note the fresh post-IPO high in China-based “hot pot” restaurant operator $54 billion Haidilao International (6862 HK: +21.04%), last week’s top performing China-linked IPOX® International (ETF: FPXI) holdings, with handset maker Xiaomi (1810 HK: -6.85%) ranking towards the bottom of the weekly performance ranking.
|Select IPOX® Indexes Price Returns (%)||2020||Week||YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global Super Liquid (IPGL50) (USD)||66.63||7.26||11.91|
|IPOX® International (IPXI) (USD) (ETF : FPXI)||72.15||6.67||7.99|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||47.32||7.95||11.85|
|IPOX® ESG (IPXT) (USD)||42.29||7.53||9.16|
|IPOX® SPAC (SPAC) (USD)**||48.52||9.54||16.29|
|IPOX® EV (IPEV) (USD)***||11.02||5.05||15.30|
|IPOX® Indexes: Europe/Nordic|
|IPOX® 100 Europe (IPOE) (USD) (ETF: FPXE)||35.14||4.99||3.95|
|IPOX® Nordic Core (IPND) (EUR)||59.89||6.18||5.16|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||47.50||2.84||6.38|
|IPOX® China Core (CNI) (USD)||88.02||7.96||20.13|
|IPOX® Japan (IPJP)(JPY)||25.75||1.93||-1.10|
* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOH1). Source: Bloomberg. Prices exclude dividends. **since July 30, 2020, ***since Nov. 17, 2020.
IPOX® SPAC (SPAC): The Index added +9.54% last week, rising +72.73% since its 7/30/2020 launch. SPAC news include 1) 11 SPACs Announced Merger Agreement/LOI include (partially): a) VG Acquisition with DNA-testing company 23andMe; b) Dragoneer Growth Opportunities with Advent-backed insurtech CCC Information Services; c) FTAC Olympus Acquisition with payment company Payoneer and d) 10X Capital Venture Acquisition with EV-tech supplier REE Automotive. 2) 2 SPACs Completed Business Combination include: a) CC Neuberger I with supply chain software provider E2open (ETWO) and b) AMCI Acquisition with fuel cell company Advent Technologies (ADN). 3) Deals reportedly in talk: Vista’s risk management software developer Solera with Apollo Strategic Growth. 4) 27 new SPACs flooded the market on the week.
IPO Deal-flow Review and Outlook: At least 31 IPOs launched across the global markets during the first week of February with the average (median) equally weighted deal adding a massive +47.39% (+32.84%) based on the final offering price and respective first close. All high-profile deals soared, including TikTok rival short video sharing platform Kuaishou (1024 HK: +160.87%), Indonesia digital banking company Bank Net Syariah (BANK IJ: +280.58%), Japanese quantum dot laser developer QD Laser (6613 JP: +126.47%), U.S. preclinical-stage cell therapy company Vor BioPharma (VOR US: +108.33%) and German online used car platform Auto1 (AG1 GR: +33.16%), German’s largest IPO in two decades. Deals lined up this week include Blackstone-backed dating app Bumble (BMBL US) and the retail unit spin-off (OR TB) of Thailand’s biggest energy company PTT Oil. Other IPO news include: 1) Hellman & Friedman owned European fund distributor Allfunds move forward with upcoming IPO plan; 2) Tecent music unit mulls HK listing; 3) Greek yogurt maker Chobani, oat milk maker Oatly both eye IPO at $10B valuation; and 4) German automaker Daimler (Mercedes-Benz) to spin off Truck unit on Frankfurt exchange.
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