Summary: Rising yields and risk (VIX: +12.70%) amid substantiated U.S. inflation fears triggered profit taking across the diversified benchmarks ahead of U.S. Option expiration week with the growth focused IPOX® Indexes recording declines anew. Weak China and big volatility in select U.S. and European portfolio holdings after earnings continued to weigh on IPOX® sentiment. Despite strong gains towards week-end, the IPOX® U.S. (ETF: FPX), e.g, benchmark for U.S. IPO performance, shed -2.91% to -3.45% YTD, lagging the S&P 500 (ETF: SPY), benchmark for U.S. stocks. Declines extended to markets abroad with the IPOX® International (ETF: FPXI) and IPOX® Europe (ETF: FPXE) all recording losses.
IPOX® U.S. Investing (ETF: FPXI) since 2006:
IPOX® StockWatch: Select high growth stocks reporting earnings ranking towards the bottom of the weekly IPOX® performance rankings included marketplace operator 06/2019 IPO The RealReal (REAL US: -36.58%), insurance broker 05/2020 IPO Selectquote (SLQT US: -26.95%) and dating platform operator 02/2021 IPO Bumble (BMBL US: -26.16%), while regulatory overhang continued to pressure IPOX® International (ETF: FPXI) heavyweights Chinese e-commerce platform operators 09/2018 IPO Meituan (3690 HK: -13.72%) and 07/2018 IPO Pinduoduo (PDD US: -11.56%). We note gains across select IPOX® Holdings linked to corporate actions including IPO M&A British investment services provider M&G (MNG LN: +8.55%, takeover target) and animal health care firm Elanco (ELAN US: +5.84%, activist investor interest). Ahead of more IPO activity in the region, IPOX® International (ETF: FPXI) portfolio holding 12/2017 IPO Abu Dhabi National Oil Company for Distribution PJSC (ADNOCDIS UH: +2.95%) closed at a fresh post-IPO high.
|Select IPOX® Indexes Price Returns (%)||2020||Last Week||YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global Super Liquid (IPGL50) (USD)||66.63||-3.95||-6.16|
|IPOX® International (IPXI) (USD) (ETF : FPXI)||72.15||-3.99||-7.51|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||47.32||-2.91||-3.45|
|IPOX® ESG (IPXT) (USD)||42.29||-1.99||-4.37|
|IPOX® SPAC (SPAC) (USD)||48.52||-0.29||-3.64|
|IPOX® Indexes: Europe/Nordic|
|IPOX® Europe (IPOE) (USD) (ETF: FPXE)||35.14||-4.04||-1.59|
|IPOX® Nordic Core (IPND) (EUR)||59.89||-5.41||5.78|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||47.50||-5.15||-7.00|
|IPOX® China Core (CNI) (USD)||88.02||-4.19||-13.14|
|IPOX® Japan (IPJP)(JPY)||25.75||-3.36||-3.55|
* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOM1).
The IPOX® SPAC (SPAC) Index fell -0.29% last week to -3.64% YTD and +43.13% since its 7/30/2020 launch. SPAC news include: 1) 8 SPACs Announced Merger Agreements include (partially): a) Switchback II with e-scooter Bird; b) Aurora with mortgage lender Better; c) Austerlitz II with casino games app Wynn Interactive, and d) Hennessy Capital V with self-driving truck Plus. 2) SPACs reportedly in talks include: a) travel booking app Omio; b) German content management platform Contentful and c) German conglomerate Thyssenkrupp’s hydrogen unit. 3) 4 new SPACs launched last week globally.
IPO Deal-flow Review and Outlook: At least 12 IPOs launched across the global markets last week with the average (median) equally weighted deal adding +94.80% (+4.65%) based on the final offering price and respective Friday’s close. Three one-billion-dollar IPOs traded mixed with Korean SK Innovation’s battery material unit spin-off SK IE Technology (361610 KS: +34.29%) and one of the largest Thai IPO, CVC-backed microfinance company Ngern Tid Lor (TIDLOR TB: +10.96%) gaining, while Canadian chip maker Alphaware (AWE LN: -7.32%) fell in London. Chinese microcap E-Home Household Services (EJH US: +1100.00%) stunned with a twelve-fold initial gain. Multiple IPOs postponed across board amid market volatility including PE-backed German online car marketplace Meinauto, Brazilian hospital operator Athena Saúde, and Genworth’s mortgage insurance unit spin-off Enact (ACT US). Oat milk maker Oatly (OTLY US), EQT-backed German software developer SUSE (SUSE GR) and website designer Squarespace (SQSP US/Direct Listing) are lined up for this week. Other IPO news include: 1) personal finance startup Nerdwallet and Brookfield-owned car battery manufacturer Clarios file confidentially for a U.S. IPO; 2) French supermarkets operator Casino mulls IPO for its renewable unit spin-off GreenYellow; 3) commodities broker Marex plans IPO in London; and 4) Swedish car maker Volvo explores listing in Stockholm.
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