Most IPOX Indexes record weekly declines as global technology stocks weaken. Big drop in the U.S. dollar propels IPOX 100 Europe (ETF: FPXE) to fresh weekly all-time high. Most IPOX Indexes declined last week as the impact of profit taking in U.S. and China-based technology exposure after the big run-up (CNI: -0.88%, NDX: -1.52%) and renewed jitters over the economic impact of COVID-19 outweighed lower U.S. rates, a weakening dollar and stable U.S. equity risk (+0.62%). In the U.S. e.g., the IPOX 100 U.S. (ETF: FPX), benchmark for the performance of large U.S. IPOs and Spin-offs, shed -1.03% to +7.98% YTD, lagging the S&P 500 (SPX), benchmark for U.S. stocks, for a 2nd week. Here 56/100 of portfolio stocks fell, with the average (median) equally-weighted firm dropping by -1.08% (-0.75%), in line with the applied market-cap weighted IPOX 100 U.S. (ETF: FPX). Performance of the IPOX Strategies focusing on non-U.S. domiciled exposure trading in the U.S. and/or abroad was mixed: While end-of-week declines in some “red hot” China-linked exposure pressured the IPOX International (ETF: FPXI) to close at +33.04% YTD, the USD denominated IPOX 100 Europe (ETF: FPXE) and developed IPOX Asia-Pacific (IPTA) finished out the week at a new weekly all-time high, respectively.
European IPO Investing with the “FPXE” ETF since launch:
Nordic-domiciled firm continued to rank towards the top of the weekly IPOX Indexes performance rankings with Norway’s internet services provider Adevinta (ADE NO: +18.26%), Stockholm-traded e-commerce company BHG Group (BHG SS: +10.25%) and health care services provider Medicover (MCOV SS: +9.05%) leading the way, while U.S.-domiciled home products stores operator Floor & Décor Holdings (FND US: +10.80%) ranked as best performer in the IPOX 100 U.S. (ETF: FPX). Amid the cooling reception for the weeks biotech offerings in the U.S., we note the weakness in a slew of more seasoned deals in the industry, including Viela Bio (VIE US: -12.30%) and Adaptive Bio (ADPT US: -8.92%).
|Select IPOX® Indexes Price Returns (%)||Last Week||2019||2020 YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global (IPGL50) (USD)||-1.14||27.93||27.76|
|IPOX® International (IPXI)* (USD) (ETF: FPXI)||-0.31||31.37||33.04|
|IPOX® Indexes: United States|
|IPOX® Composite U.S. (IPXC) (USD)||-1.37||24.64||10.54|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||-1.03||29.60||7.98|
|IPOX® ESG (IPXT) (USD)||-2.53||–||–|
|IPOX® Indexes: Europe/Nordic|
|IPOX® 30 Europe (IXTE) (EUR)||-1.12||34.55||23.15|
|IPOX® Nordic (IPND)||0.22||38.52||33.47|
|IPOX® 100 Europe (IPOE)* (USD)||0.39||30.97||15.69|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||0.65||4.41||17.24|
|IPOX® China (CNI) (USD)||-0.88||26.31||35.32|
|IPOX® Japan (IPJP)** (JPY)||0.86||37.91||2.35|
* 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 (IPOM0). Source: Bloomberg L.P. & Refinitiv/Thomson Reuters. For IPOX Alternative Strategies Returns, please contact [email protected]
|ADEVINTA ASA||18.26||ZUR ROSE GROUP AG||-14.12|
|FLOOR & DECOR HOLDINGS||10.80||ASTON MARTIN LAGONDA||-13.91|
|BHG GROUP AB||10.25||CARDLYTICS INC||-12.63|
|MEDICOVER AB||9.05||VIELA BIO INC||-12.30|
|BANDWIDTH INC||8.76||EVOLUTION GAMING||-11.84|
|INTEGRAFIN HOLDINGS PLC||7.77||SCHRODINGER IN||-9.88|
|MERCARI INC||7.01||SNAP INC||-9.74|
|BECLE SAB DE CV||6.69||ZAI LAB LTD||-9.13|
|DRAFTKINGS INC||6.19||ADAPTIVE BIOTECH||-8.92|
|TOKMANNI GROUP CORP||5.66||SELECTQUOTE INC||-8.68|
IPO Deal-flow Review and Outlook: Software developer Jamf (JAMF US) soars, while U.S. biotech IPO rally fizzles. Vertex (VERX US) and Vasta (VSTA US) lined up. At least 7 IPOs started trading across the global regions last week, with the average (median) equally-weighted deal adding +28.05% (+9.62%) based on the difference between the final offering price and their respective Friday’s close. While enterprise software management unicorn Jamf (JAMF US: +52.69%) and environmental consulting firm Montrose (MEG US: +49.27%) debuted strongly, U.S. biotech IPOs rallied much less than expected, including Inozyme Pharma (INZU US: +9.62%), iTeos Therapeutics (ITOS US: +0.26%) and Nurix Therapeutics (NRIX US: +0.05%). Just two significant deals are lined up for this week, including $2B-valued tax software provider Vertex (VERX US) and Brazilian online education platform operator Vasta (VSTA US). Other IPO news include: 1) Alibaba’s fintech arm Ant Group set to proceed with a Shanghai/H.K. dual stock market listing; 2) German coronavirus vaccine developer CureVac files for U.S. IPO; 3) more Chinese firms seek U.S. IPOs including $3B fintech Lufax, $4B insurtech Waterdrop and $1B housing services platform operator Beike (KE Holdings); 4) Brazilian pharmacy chain Nissei plans to go public; 5) Vodafone tower IPO on track for 2021 IPO.
Track global deal flow live on: https://bit.ly/2WMvnT9
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