The IPOX® Week, July 12th, 2021

  • IPOX® Indexes trade mixed during volatile week for stocks. IPOX® China leads declines.
  • IPOX® Nordic propels IPOX® Europe (ETF: EFPX IM [EUR]) to solid weekly gain.
  • IPOX® SPAC (SPAC) struggles anew, follows U.S. small caps lower, sheds -0.83%.
  • Chinese specialty IPOs soar in Hong Kong. Mark Wahlberg’s F45 lined up for U.S. IPO debut

WEEKLY Summary: More downside in China-linked exposure on regulatory overhang and economic growth fears amid rising COVID-19 variant cases drove a big decline in U.S. yields, while U.S. equity risk (VIX: +7.37%) rose ahead of U.S. earnings, leaving the IPOX® Indexes trading mixed. In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX) declined by -0.31% to +7.45% YTD, performing better when compared to the Russell 2000 (RTY), while lagging the hard-to-beat S&P 500 (SPX) and Nasdaq 100 (NDX). Returns were also mixed across non-U.S. domiciled exposure: While a bad week for the IPOX® China (CNI) pressured the IPOX® International (ETF: FPXI), strength across Nordic-domiciled portfolio holdings propelled the IPOX® Europe (ETF: EFPX [EUR]), with the IPOX® Nordic (IPND) finishing at a fresh weekly all-time high.

IPOX® nordic propels Ipox® europe (ETF: EFPX IM [EUR])

IPOX® portfolio hodlings in focuS:  The dispersion of individual IPOX® portfolio returns remained within a relatively small range: Top of the list ranked U.S. biotech Biohaven (BHVN US: +17.79%) which soared on takeover speculation, followed by web services provider Similarweb (SMWB US: +14.82%) and Korean e-commerce behemoth Coupang (CPNG US: +4.13%). Non-Nordic European-domiciled companies recording notable gains included London-traded auction technology platform maker Auction Technology (ATG LN: +8.55%) and tower operator Vantage Towers (VTWR GY: +6.66%), while Swedish biotech Cellink (CLNKB SS: +6.05%), medical equipment maker Lifco (LIFCOB SS: +5.19%), building construction services provider Instalco (INSTALCO SS: +4.88%), real estate developer Kojamo (KOJAMO FH: +4.80%), application software maker Cint  (CINT SS: +4.61%) and private equity firm EQT (EQT SS: +3.98%)  ranked amongst top performing companies in Europe’s burgeoning Nordic region. China-linked stocks suffering significant losses included Chinese biotech Cansino (6185 HK: -13.44%), video games maker Bilibili (BILI US: -10.74%), hotel operator and franchisor Huazhu (HTHT US: -8.76%), e-commerce behemoth Meituan (3690 HK: -8.16%), biotech Pharmaron (3759 HK: -6.39%) and Netherlands-traded Financial Prosus (PRX NA: -6.21%), the discounted proxy for exposure to   social networking giant Tencent (700 HK: -6.19%).

Select IPOX® Indexes Price Returns 2020 Last Week YTD
IPOX® Indexes: Global/International
IPOX® Global Super Liquid (IPGL50) (USD) 66.63 -1.51 1.77
IPOX® International (IPXI) (USD) (ETF: FPXI) 72.15 -1.72 -2.97
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 47.32 -0.31 7.45
IPOX® ESG (IPXT) (USD) 42.29 -0.15 9.63
IPOX® SPAC (SPAC) (USD) 48.52 -0.83 -3.49
IPOX® Indexes: Europe/Nordic
IPOX® Europe (IPOE) * (USD) (ETF: FPXE) 35.14 0.23 4.58
IPOX® Nordic Core (IPND) (EUR) 59.89 1.27 16.80
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 47.50 -0.53 -1.42
IPOX® China Core (CNI) (USD) 88.02 -6.42 -12.86
IPOX® Japan (IPJP) (JPY) 25.75 -1.35 5.70

* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOU1). *also available In UCITS format in Europe in EUR (EPFX IM), and GBP (FPX LN).

IPOX® SPAC INDEX (SPAC):   The Index fell -0.83% to -3.49% YTD and +43.35% since its 7/30/2020 launch. SPAC news include: 1) 8 SPACs Announced Merger Agreements (partial): a) Far Peak Acquisition with cryptocurrency exchange Bullish; b) Concord Acquisition with cryptocurrency payments platform Circle and c) Khosla Venture II with hyperlocal social network Nextdoor. 2) 1 SPAC Approved Business Combination: a) Spartan Acquisition II with residential solar financier Sunlight Financial (SUNL: 7/12). 3) SPAC reportedly in talks: a) Gores Guggenheim with Volvo-backed EV maker Polestar and b) talks between Social Capital Hedosophia VI and gym chain Equinox reportedly ended. 4) 4 new SPACs launched last week in the U.S.

Weekly GLOBAL Deal-flow Review and Outlook:  At least 15 IPOs debuted, with the average IPO adding +13.28%. Most deals in H.K. rose, including biotech Keymed (2162 HK: +30.21%), medical equipment maker Zylox-Tonbridge (2190 HK: +25.64%) and ophthalmic medical services provider Chaoju Eye Care (2219 HK: +40.38%). Homecoming EV maker XPeng (9868 HK: -5.58%), however, tumbled. The first London direct listing British money transfer app Wise (WISE LN: +20.63%) also debuted strongly. The “Hot” IPO market is set to continue with at least 30 deals scheduled, including Abu Dhabi’s satellite operator Al Yah (YAHSAT UH), Italian drug containment provider Stevanato  (STVN US), Mover Participacoes Brazilian cement unit spin-off InterCement Brasil (ICBR3 BZ), Russian private healthcare provider United Medical (GEMC RM), first Lisbon-listed IPO in years, Portuguese pulp producer Altri owned biomass energy spin-off GreenVolt (GVOLT PL) and a previous SPAC merger fail fitness studio chain Mark Wahlberg-owned F45 (FXLV US). Other IPO news include: a) Forever 21 and other consumer brands owner Authentic Brands, Greek yogurt maker Chobani and Indonesian e-commerce giant Bukalapak file for IPO; b) Czech-based Apollo-backed euro lottery firm Sazka revives London IPO; c) amid Chinese regulatory crackdown, multiple Chinese ADRs pulled U.S. IPOs.

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