The IPOX® Week, July 27, 2020

  • 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.
  • IPOX 100 U.S. (ETF: FPX) falls -1.03% to +7.98% YTD. IPOX International (ETF: FPXI) declines -0.31% to +33.04% YTD. IPOX 100 Europe (ETF: FPXE) gains +0.39% to +15.69% YTD.
  • Vertex (VERX US) and Vasta (VSTA US) IPO lined up.

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]

IPOX-linked ETFs (FPX, FPXI, FPXE) Movers (Last Week in %):
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

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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