The IPOX® Week, January 25th, 2021

  • IPOX® soars anew on political optimism, China strength.
  • IPOX®-linked ETFs close out trading week at all-time Highs: FPX, FPXI and FPXE. IPOX® ETFs AUM reach $3 billion.
  • IPOX® SPAC (SPAC) rises to +13.42% YTD. IPOX® EV jumps.
  • “Hot” IPO market continues unabated with IPOs in big demand across the world regions. More deals lined up.

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.

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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