The IPOX® Week, May 04, 2020
May 4, 2020- After big run-up, IPOX Indexes consolidate. IPOX heavyweight 12/2019 IPO Saudi Aramco (ARAMCO AB) gains.
- IPOX 100 U.S. (ETF: FPX) in focus as 34% of portfolio holdings are set to report earnings.
- Lyra Therapeutics (LYRA US) adds to long list of recent biotech IPOs; little deal flow seen.
After big run-up, IPOX Indexes consolidate. The IPOX Indexes finished the week mixed to lower, motivated by profit taking after the big run-up amid slightly higher U.S. yields, risk (VIX US: +3.51%) and generally solid earnings. In the U.S., e.g., the IPOX 100 U.S. (ETF: FPX) fell -2.68% to -12.20% YTD, outpacing the S&P 500 (SPX) and Russell 2000 (RTY) by +13 bps. and +115 bps. on the week, respectively. Here, 55/100 firms fell with the average (median) equally-weighted stock declining by -0.18% (-1.00%), better than when compared to the applied market-cap weighted IPOX 100 U.S. (ETF: FPX). With earnings season in full swing, the distribution of individual stock returns was significant with life science equipment maker Avantor (AVTR US: +19.73%) and car vending machine operator 04/2017 IPO Carvana (CVNA US: -17.61%) leading the way. A massive 34 IPOX 100 U.S. (ETF) holdings are set to report earnings this week, including:
| Name | Ticker | ETF | Date |
| TOPBUILD | BLD UN | FPX | 5/5/2020 (Bef-mkt) |
| CARVANA | CVNA UN | FPX | 5/6/2020 (Aft-mkt) |
| EVERBRIDGE | EVBG UQ | FPX | 5/6/2020 (Aft-mkt) |
| FRONTDOOR | FTDR UW | FPX | 5/6/2020 (Bef-mkt) |
| LIVONGO HEALTH | LVGO UW | FPX | 5/6/2020 (Aft-mkt) |
| PAYPAL | PYPL UW | FPX | 5/6/2020 (Aft-mkt) |
| AVALARA | AVLR UN | FPX | 5/7/2020 (Aft-mkt) |
| BILL.COM | BILL UN | FPX | 5/7/2020 (Aft-mkt) |
| CORTEVA | CTVA UN | FPX | 5/7/2020 (Bef-mkt) |
| FIDELITY NATIONAL | FIS UN | FPX | 5/7/2020 (Bef-mkt) |
| IRHYTHM | IRTC UW | FPX | 5/7/2020 (Aft-mkt) |
| ROKU | ROKU UW | FPX | 5/7/2020 (Aft-mkt) |
| TRADE DESK | TTD UQ | FPX | 5/7/2020 (Aft-mkt) |
| ARVINAS | ARVN UW | FPX | 5/8/2020 (Bef-mkt) |
| SWITCH | SWCH UN | FPX | 5/8/2020 (Bef-mkt) |
IPOX Markets abroad: In the IPOX International (ETF: FPXI), e.g., the impact of profit taking in select exposure after earnings including windfarm operator 06/2016 IPO Orsted (ORSTED DC: -3.98%) and online food services provider Hellofresh (HFG GY: -4.09%) outweigh big strength in IPOX heavyweight 12/2019 IPO Saudi Aramco (ARAMCO AB:+5.50%).
Investing in the New Generation of Int’l Stocks with “FPXI”:
| Long-only IPOX® Indexes Price Returns (%) | Last Week | 2019 | 2020 YTD |
| IPOX® Indexes: Global/International | |||
| IPOX® Global (IPGL50) (USD) | -2.12 | 27.93 | -1.63 |
| IPOX® International (IPXI)* (USD) (ETF: FPXI) | -0.96 | 31.37 | 2.29 |
| IPOX® Indexes: United States | |||
| IPOX® Composite U.S. (USD) | -2.95 | 24.64 | -9.24 |
| IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) | -2.68 | 29.60 | -12.20 |
| IPOX® ESG (IPXT) (USD) | -3.00 | – | – |
| IPOX® Indexes: Europe/Nordic | |||
| IPOX® 30 Europe (IXTE) (EUR) | -0.04 | 34.55 | 2.66 |
| IPOX® Nordic (IPND) | -1.20 | 38.52 | -1.70 |
| IPOX® 100 Europe (IPOE)* (USD) | -0.33 | 30.97 | -6.25 |
| IPOX® Indexes: Asia-Pacific/China | |||
| IPOX® Asia-Pacific (IPTA) (USD) | -1.31 | 4.41 | -2.59 |
| IPOX® China (CNI) (USD) | -1.16 | 26.31 | 5.02 |
| IPOX® Japan (IPJP)** (JPY) | -0.65 | 37.91 | -14.81 |
* 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]
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| AIB GROUP | 26.58 | CARVANA CO | -17.61 |
| AVANTOR | 19.73 | APELLIS PHARMA | -13.15 |
| DWS GROUP | 19.40 | ZOOM VIDEO | -12.75 |
| GSX TECHEDU | 17.23 | MYOKARDIA | -12.22 |
| SINCH | 16.08 | CRISPR THERAPEUTICS | -10.28 |
| FLOOR & DECOR | 15.48 | FREEE KK | -9.88 |
| KINSALE CAPITAL | 15.29 | BILIBILI | -9.37 |
| STONECO | 15.04 | GAZTRANSPORT | -9.25 |
| BILL.COM HOLDINGS | 14.34 | MEDPACE | -9.13 |
| COOR SERVICE | 13.16 | SAMHALLSBYGGNADSB. | -8.89 |
IPO Deal-flow Review and Outlook: ENT-specialist Lyra Therapeutics (LYRA US) surprises market with speed-up IPO. Pipeline remains quiet for May. Only 1 firm traded across the global regions last week as MA-based, clinical-stage ENT (ear, nose and throat)-focused Lyra Therapeutics (LYRA US: +16.00%) followed the recent biotech trend to tap the U.S. IPO market on rather short notice. Other markets remained quiet as Continental European and most Asian Markets were closed for Labor Day holidays. London-based gambling software provider GAN (GAN US) is expected to trade in the U.S. this week. Other IPO news include: 1) Fortive withdraws its transportation and mobility unit Vontier’s $1 billion IPO plan; 2) $5 billion-worth construction software company Procore postpones IPO; 3) Mongolia shelves its state-owned coal mine Erdenes Tavan Tolgo’s Hong Kong IPO listing; 4) South Korea’s Shinsegae proceeds with its e-mart retail chain REIT; 5) Norwegian Zoom rival Pexip set to list in Oslo by end of Q2; and 6) Chinese bitcoin mining equipment manufacturer Ebang files for U.S. IPO.
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