IPOX® soars anew last week: While global equities recorded gains, the potent mix of political optimism, stable U.S. yields, solid earnings and fundamentals, declining equity risk (VIX: -9.98%) and China/European strength continued to overproportionally benefit IPOX®. In the U.S., the FANG-free, broad-based IPOX® 100 U.S. ETF (FPX) added +2.69% to +7.80% YTD, closing out the week at an all-time High and outperforming the S&P 500 (SPX), benchmark for U.S. stocks, by +75 bps. Gains extended to markets abroad, with another huge move in the IPOX® China (CNI) driving the IPOX® International (ETF: FPXI) to a weekly gain of +5.85% to +7.06% YTD, +525 bps. ahead of its benchmark. Drivers of the big strength in the IPOX® China (CNI) continued to be broad based asset allocation flows from Mainland Chinese investors into blue-chip H.K. traded specialty exposure across industries, often New Listings. Amid a pick-up in European IPO activity, gains extended to the IPOX® Europe (ETF: FPXE). After netting +35.14% in 2020, the unique European portfolio added +2.96% to +3.93% YTD. Individual
companies with significant upside focus included Israel-based medical imaging technology provider Nano-X (NNOX US: +32.55%), U.S. based personal styling platform operator Stitch Fix (SFIX US: +31.20%), Direct listing software maker Palantir (PLTR US: +27.07%), Germany’s online pharmacy Shop Apotheke (SAW GY: +27.04%), Chinas ecommerce platform operator Meituan (3690 HK: +23.60%), H.K. traded computer accessories manufacturer Razer (1337 HK: +15.32) and biotech Wuxi Biologics (2269 HK: +17.77%). We also note the jump in IPOX® International (ETF: FPXI) position Fintech/Asset Manager Netwealth (NWL AU: +20.50%) soaring after raising guidance on AUM growth forecast. Japans ecommerce company Mercari (4385 JP: -7.57%, U.S. agricultural chemics maker Spin-off Corteva (CTVA US: -3.86%), online pet food retailer Chewy (CHWY US: -2.80%) and Japans leading logistics services provider SG Holdings (9143 JP: -3.51) were notable decliners during last week’s trading.
|Select IPOX® Indexes Price Returns (%)||2020||2021 YTD||Week|
|IPOX® Indexes: Global/International|
|IPOX® Global Super Liquid (IPGL50) (USD)||66.63||8.72||4.59|
|IPOX® International (IPXI) (USD) (ETF : FPXI)||72.15||7.06||5.85|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||47.32||7.80||2.69|
|IPOX® ESG (IPXT) (USD)||42.29||5.20||1.42|
|IPOX® SPAC (SPAC) (USD)**||48.52||13.42||5.27|
|IPOX® EV (IPEV) (USD)***||11.02||18.67||5.48|
|IPOX® Indexes: Europe/Nordic|
|IPOX® 100 Europe (IPOE) (USD) (ETF: FPXE)||35.14||2.96||3.93|
|IPOX® Nordic Core (IPND) (EUR)||59.89||2.36||2.56|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||47.50||7.97||4.19|
|IPOX® China Core (CNI) (USD)||88.02||18.57||12.47|
|IPOX® Japan (IPJP)(JPY)||25.75||2.60||4.03|
* 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 +5.27% last week, adding to +68.47% since its 7/30/2020 live launch. SPAC news include 1) 1 SPAC Announced Merger Agreement/LOI: a) Climate Change Crisis Real Impact I Acquisition with electric vehicle fast charging station operator EVgo. 2) 3 SPACs Completed Business Combination: a) Gores Holdings IV with United Wholesale Mortgage (UWM) on the biggest SPAC deal ever; b) Oaktree Acquisition with telehealth company Hims & Hers (HIMS); and c) Acamar Partners Acquisition with vehicle consignment firm CarLotz (LOTZ). 3) Deals reportedly in talk: Toyota-backed electric air taxi developer Joby Aero 4) 14 new SPACs launched last week.
IPO Deal-flow Review and Outlook: At least 10 IPOs launched last week with the average (median) equally weighted deal adding +31.90% (+23.53%) based on the final offering price and respective close. Deals were strongly in demand, including Chinese e-cigarette maker RLX Technology (RLX US: +145.92%), home builder Dream Finder Homes (DFH US: +64.54%), luxury fashion platform MYT Netherlands/Mytheresa (MYTE US: +30.00%), and asset manager Patria Investment (PAX US: +17.06%). German software giant SAP’s 2018 $8 billion buyout – experience management platform Qualtrics (XM US), Israeli veteran container liner shipping firm ZIM Integrated Shipping Services (ZIM US), diagnostic unit Ortho Clinics Diagnostic (OCDX US), Advent-backed Polish parcel locker provider InPost (INPST NA), and another Brazilian asset manager Vinci Partners (VINP US) lead this week’s busy pipeline. Other IPO news include: 1) TikTok rival short-video sharing platform Kuaishou en route to H.K. IPO; 2) Swedish payment company Trustly Group mulls $11 billion IPO in Stockholm; 3) Australian Jupiter Mine scheduled to spin off Juno Minerals in ASE IPO; 4) more IPO talks for European market include Russian gold miner Nordgold, German online car retailer Mobility, and London-based online greeting cards and gifts platform Moonpig, 5) Southeast Asia ride-share and foot delivery giant Grab (which acquired Uber’s Southeast Asia operations in 2018) plans to list in the U.S.
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