The IPOX® Week, March 22nd, 2021

  • IPOX® Indexes trade mixed during expiration week.
  • a) IPOX® 100 U.S. (FPX) drops -3.00% to +4.72% YTD.
    b)IPOX® International (FPXI) sheds -1.11% to -2.74% YTD.
    c)IPOX® 100 Europe (FPXE) loses -0.11% to -1.78% YTD.
  • IPOX® SPAC (SPAC) declines -3.15% to +52.94% since 07/31.
  • Global New Issuing Activity continues at brisk pace: High-profile specialty firms line up to go public in the U.S.

IPOX® Indexes trade mixed during expiration week.  Lip service from the FED did little to sooth equity investors fear over higher interest rates during expiration week, with the growth innovation focused IPOX® Indexes turning in a notably mixed performance last week across the global regions. In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX), benchmark for the performance of U.S. domiciled New Listings, sank -3.00% to +4.27% YTD, reversing much of its previous week’s strong (relative) gains. Here, 72/100 stocks declined, with the average (median) portfolio holding losing -2.51% (-2.38%), outpacing the applied market-cap weighted IPOX® 100 Index (ETF: FPX). More muted declines extended to the International level and select regional markets abroad, including the

IPOX® 100 Europe (ETF: FPXE) and IPOX® China (CNI) which receded -0.11% to -1.78% YTD and -0.80% to +1.57% YTD, respectively. Alongside a strongly rising IPOX® Asia-Pacific (IPTA) and IPOX® Japan (IPJP), Europe’s Nordic regions was once more a stand-out, with the broad IPOX® Nordic (IPND) adding +0.62% to +5.48% YTD. Amongst individual IPOX® Portfolio Holdings, we note the fresh weekly all-time high in specialty growth exposure including Chinese online music entertainment platform operator Tencent Music Entertainment (TME US: +14.84%), Sweden’s B2B live casino solutions provider Evolution Gaming (EVO SS: +10.16%) NYC-based multimedia company and IPOX® 100 U.S. (ETF: FPX) member ViacomCBS (VIAC US: +2.54%),as well as Russia’s online recruitment services provider 05/19 IPO Headhunter Group (HHR US: +3.41%). Select IPOX® Holdings recorded big declines on renewed selling around relatively unseasoned equities mostly untracked in the benchmarks and sometimes motivated by corporate updates, including biotech’s 07/20 IPO Allovir (ALVR US: -15.65%) and 05/17 IPO Biohaven Pharma (BHVN US: -13.58%), as well as enterprise software solutions provider 05/17 IPO Appian (APPN US: -12.78%).

Select IPOX® Indexes Price Returns (%) 2020 Last Week YTD
IPOX® Indexes: Global/International
IPOX® Global Super Liquid (IPGL50) (USD) 66.63 -2.41 3.15
IPOX® International (IPXI) (USD) (ETF : FPXI) 72.15 -1.11 -2.74
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 47.32 -3.00 4.72
IPOX® ESG (IPXT) (USD) 42.29 -2.01 4.27
IPOX® SPAC (SPAC) (USD)** 48.52 -3.15 2.96
IPOX® Indexes: Europe/Nordic
IPOX® 100 Europe (IPOE) (USD) (ETF: FPXE) 35.14 -0.11 -1.78
IPOX® Nordic Core (IPND) (EUR) 59.89 0.62 5.48
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 47.50 1.38 0.18
IPOX® China Core (CNI) (USD) 88.02 -0.80 1.57
IPOX® Japan (IPJP)(JPY) 25.75 2.41 1.93

* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOH1). Source: Bloomberg. Prices exclude dividends. **since July 30, 2020.
IPOX® SPAC (SPAC).  The IPOX® SPAC Index (SPAC), which measures the performance of some of the largest and most significant common stock of SPACs into deal consummation and key proxy for U.S. SPAC sentiment, displayed renewed weakness last week, shedding -3.15% to +2.96% YTD, and +52.94% since its 07/31/2020 live launch and -18.68% since its 02/17 All-time High. We note another big week for SPAC issuance with at least 26 companies raising USD billion 8.81 based on final offering size with the IPO of USD billion 1.5 KKR Acquisition Holdings I Corp (KAHC/U: +0.20%) as the stand-out. IPOX® SPAC (SPAC) Portfolio Holdings followed the weakness amongst the Russell 2000 and IPOX® 100 U.S. (ETF: FPX) and traded notably weak across the board with Thunder Bridge Acquisition (THBR US: -11.11%) leading the list of decliners and Foley Trasimene Acquisition Corp II (BFT US: +4.70%) as the outlier to the upside.

IPO Deal-flow Review and Outlook:  At least 29 accessible (non-SPAC) IPOs commenced trading across the global regions last week, with the average (median) firm adding +29.97% (+19.20%) based on the difference between final offering price and Friday’s close, respectively. IPO deal flow was spread well across global regions: Some stand-out deals included South Korean biotech SK Bioscience (302440 KS: +156.15%), German infrastructure and technology solutions provider Vantage Towers (VTWR GR: +2.94%), Chinese infrastructure software maker Tuya (TUYA US: +19.62%), as well as U.S. specialty small-caps high-end alcoholic beverages producer The Duckhorn Portfolio (NAPA US: +26.67%) and 1.9 Sun Country Airlines (SNCY US: +41.63%). High profile specialty exposure lined up for this week include British internet media company Trustpilot (TRST LN), U.S. defense contractor Leonardo DRS (DRS US), software makers ACV Auctions (ACVA US) and DigitalOcean (DOCN US), U.S. specialty chemicals maker Diversey (DSEY US) and consumer electronics maker Vizio (VZIO US).

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