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.

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