The IPOX® Week, March 29th, 2021

  • Most IPOX® Indexes decline for 2nd
  • a) IPOX® 100 U.S. (FPX) drops -4.60% to -0.09% YTD.
    b)IPOX® International (FPXI) sheds -3.44% to -6.09% YTD.
    c)IPOX® 100 Europe (FPXE) loses -2.09% to -3.83% YTD.
  • IPOX® SPAC (SPAC) declines -3.09% to +48.22% since 07/31.
  • Global IPO sentiment turns decisively mixed as key deals fall sharply from offering prices; More deals lined up.

Most IPOX® Indexes decline for 2nd week.   Big asset allocation shifts away from mostly unseasoned (high growth) firms insulated from Pandemic fears linked to the consumer and technology sectors drove much of the renewed weakness in the IPOX® Indexes past U.S. Futures and Option expiration week. In the. U.S., e.g., the IPOX® 100 U.S. (ETF: FPX), benchmark for U.S New Listings performance, sank -4.60% to -0.09% YTD, following the weakness in U.S. small-cap stocks and extending the relative YTD decline vs. the S&P 500 (SPX), benchmark for U.S. stocks. Declines extended to the international level with big weakness in the recent slew of large- and mega-cap China-domiciled IPOs driving the IPOX® China (CNI) to a weekly loss of -9.31% and weighing on the IPOX® International (ETF: FPXI). Europe’s Nordic Region remained a stand-out with the IPOX® Nordic (IPND), composed of a broad mixture of Nordic-domiciled firms trading across the global regions, adding +1.30% to +6.85% YTD.

IPOX® International Investing with the “FPXI” ETF

A stronger dollar (EUR: -3.45 YTD) weighed on IPOX® International performance in addition. In individual equities, significant downside was recorded by Tencent Music Entertainment (TME US: -33.93%) which plunged after undiscriminating block selling following more China tensions, while media company ViacomCBS (VIAC US: -50.46%) gave back a significant portion of its YTD gains in a big turnaround enforced by downgrades of the stock. Stand-out to the upside in last week’s trading included the IPO M&A portion of the respective portfolios with companies such as Corning (GLW US: +5.16%), Jacobs Engineering (J US: +4.265) and Thermo Fisher Scientific (TMO US: +3.38%) recording a solid week in the IPOX® 100 U.S. (ETF: FPX), while real estate services provider Country Garden (6098 HK: +13.05%) led the list of gainers in the IPOX® International (ETF: FPXI).

Select IPOX® Indexes Price Returns (%) 2020 Last Week YTD
IPOX® Indexes: Global/International
IPOX® Global Super Liquid (IPGL50) (USD) 66.63 -5.37 -2.39
IPOX® International (IPXI) (USD) (ETF : FPXI) 72.15 -3.44 -6.09
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 47.32 -4.60 -0.09
IPOX® ESG (IPXT) (USD) 42.29 -4.89 -0.82
IPOX® SPAC (SPAC) (USD)** 48.52 -3.09 -0.21
IPOX® Indexes: Europe/Nordic
IPOX® 100 Europe (IPOE) (USD) (ETF: FPXE) 35.14 -2.09 -3.83
IPOX® Nordic Core (IPND) (EUR) 59.89 1.30 6.85
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 47.50 -2.88 -2.71
IPOX® China Core (CNI) (USD) 88.02 -9.31 -7.88
IPOX® Japan (IPJP)(JPY) 25.75 -1.36 0.54

* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOH1). Source: Bloomberg. Prices exclude dividends. **since July 30, 2020

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, fell anew last week, shedding -3.09% to -0.21% YTD, and +48.22% since its 07/31/2020 live launch. SPAC news include: 1) 7 SPACs Announced Merger Agreement/LOI include (partially): a) BowX Acquisition Corp with shared workspace startup WeWorkb) Thomas Bravo Advantage with in-app video advertising platform ironSource and c) Jaws Spitfire Acquisition Corp with 3D printing company VELO3D2) 5 SPACs Completed Business Combination include (partially): a) Foley Trasimene Acquisition II with payment firm Paysafe (PSFE, ticker change on 3/31) and b) CIIG Merger Corp with British EV maker Arrival (ARVL). 3) Another 20 new SPACs flooded the market on the week.

IPO Deal-flow Review and Outlook:   At least 32 IPOs launched across the global regions last week with the average (median) deal adding +24.27% (+1.34%) based on the final offering price and Friday’s close. IPO sentiment turned decisively mixed: While European logistics park developer CTP (CTPNV NA: 0.00%) traded unchanged, “Chinese Quora” Zhihu (ZH US: -10.53%) tumbled, thrift shop thredUp (TDUP US: + 42.86%) jumped and software maker DigitalOcean (DOCN US: -11.13%) fell sharply. The IPO market is to set to stay busy towards month-end with SoftBank-backed real estate brokerage Compass (COMP US), open online course provider Coursera (COUR US) and low-fare airline Frontier (ULCC US) lined up. Other IPO news include: 1) Robinhood reportedly filed confidentially for IPO; 2) $35B robotic automation startup UiPath filed IPO; 3) Leonardo postponed DRS offer and 4) Amazon-backed food delivery startup Deliveroo set for largest U.K. IPO YTD.

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