The IPOX® Week, July 08, 2019

  • IPOX 100 U.S. (ETF: FPX) ekes out gain on Friday to finish big week at fresh All-Time High.
  • China Tobacco International (6055 HK) soars +51.73%.
  • IPO Deal-flow Review & Outlook: U.S. market quiets down during Fourth of July week. Energy distributor Neoenergia (NEOE3) marks the largest Brazilian IPO of the year. Asia-Pacific Markets in Focus.

IPOX 100 U.S. (ETF: FPX) ekes out gain on Friday to finish big week at fresh All-Time High. Amid strong U.S. economic numbers, perceived truce on global trade and higher yields towards the week-end, all IPOX Indexes kicked off the new quarter with strong gains. In the U.S., e.g., the diversified, FANG-free IPOX 100 U.S. (IPXO) added +2.15% to +28.13% YTD last week, extending the YTD lead vs. the S&P 500 (SPX) – benchmark for U.S. stocks – to +894 bps. and closing out Friday at the highest level on record. Big strength extended across the IPOX Universe, including the IPOX Global (IPGL50), IPOX International (ETF: FPX) and IPOX China (CNI). Portfolio gains were driven by firms trading across sectors and sizes, including China-linked consumer staples IPOX International (ETF: FPXI)-held state monopoly June 12th IPO China Tobacco International (6055 HK: +51.73%), packaged food producer Yihai International (1579 HK: +11.70%) and USD billion 20.6 hot pot restaurant chain Haidilao International (6862 HK: +9.57%), while specialty exposure linked to Technology & Finance including tax software maker Avalara (AVLR US: +12.04%), tobacco maker Turning Point Brands (TPB US: +8.42%), asset manager AXA Equitable (EQH US: +7.64%) and cable company Cable One (CABO US: +6.57%) propelled the IPOX 100 U.S. (ETF: FPX). Following re-balancing in some of the major benchmarks, we note a disappointing week for ride-sharing platforms operators recent IPOs Lyft (LYFT US: -9.91%) and UBER (UBER US: -3.55%).

IPOX 100 U.S.-Style Investing with the “FPX” ETF since 2006.

IPOX-linked Funds extend big YTD gains: The IPOX 100 U.S. (IPXO)-linked, 5-star (10-years) $1.25 billion First Trust U.S. Equity Opportunities ETF (FPX) added +2.19% to +28.60% YTD, while the IPOX International (IPXI)-linked 5-star (3-years) First Trust International Equity Opportunities ETF (FPXI) and the IPOX® 100 Europe (IPOE)-linked First Trust IPOX® Europe Equity Opportunities ETF (FPXE) rose +1.91% to +22.45% YTD and +0.29% to +24.93% YTD, respectively. Amongst the range of actively managed IPOX-linked mutual funds, the award-winning Catalyst IPOX® Allocation Fund (OIPAX) – rose to +26.19% YTD.

Select IPOX® Indexes Price Returns (%) Last Week 2018 2019 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 1.63 -11.37 25.32
IPOX® International (IPXI)* (USD) 1.94 -13.47 20.95
IPOX® Indexes: United States
IPOX® Composite U.S. (IPXC)* 1.29 -7.59 20.24
IPOX® 100 U.S. (IPXO)* 2.15 -8.80 28.13
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 1.01 -13.46 25.01
IPOX® Nordic (IPND) 0.83 -15.45 24.20
IPOX® 100 Europe (IPOE)* (USD) 0.11 -16.60 21.47
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 2.09 -3.21 6.24
IPOX® China (CNI) (USD) 2.88 -22.83 16.05
IPOX® Japan (IPJP)** (JPY) 2.58 -13.70 1.76

* 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 (IPOU9). ** Live since 07/18. Please contact [email protected] for other IPOX® Indexes.

IPO Deal-flow Review & Outlook: U.S. market quiets down during Fourth of July week. Energy distributor Neoenergia (NEOE3) marks the largest Brazilian IPO of the year. Asia-Pacific Markets in Focus. Only 5 firms debuted last week in markets open to global investors, with the average (median) equally-weighted stock adding +10.35% (+12.94%) based on the difference between the final offering price and Friday’s close. In the U.S., regional bank micro-cap Richmond Mutual (RMBI US: +36.50%) was the only offer during the shortened week due to the Independence Day holiday. While deal flow outside the U.S. also slowed after a frenzied June, some firms managed to debut: Spanish utility leader, Iberdrola’s Brazilian unit, power distributor Neoenergia (NEOE3 BZ: +12.91%), e.g., relaunched its 2017-shelved IPO, ranking as the biggest IPO in Brazil YTD amid strong demand and performance, while Rocket Internet backed e-commerce fashion group Global Fashion (GFG GR: -4.02%) fell based on final offer. Asia-Pacific Markets are back on track with Indonesian conglomerate Sinar Mas Group (SMGZ IJ) and Japanese P&C insurance giant MS&AC co-owned life insurance firm Sinarmas MSIG (JIWA IJ) and CIMC semi-trailer unit spin-off CIMC Vehicle (1839 HK) set to IPO. Further exciting IPO news include recent talks on a revival of the $2 trillion Saudi Aramco’s IPO, the world’s largest ever, and Stella Artois and Budweiser brewer AB InBev’s preparation for its ambitious $9.8 billion Asia unit Budweiser Brewing Co APAC (1876 HK) flotation in Hong Kong in mid-July.

Track Priced & Upcoming IPOs on

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