The IPOX® Week, May 24th, 2021

  • IPOX® Indexes gain strongly as spike in crypto volatility takes a toll on sentiment in global equity benchmarks.
  • IPOX® SPAC adds +0.74% last week.
  • IPO- beats Direct Listings Sentiment anew. Ahead of shortened U.S. trading week, significant global deal flow lined up: ZipRecruiter, Pepper Money, Pepco Group, JD Logistics.

Summary:  The IPOX® Indexes rose strongly last week, unaffected by the spike in crypto volatility denting the trading sentiment in the global equity benchmarks. Amid firm U.S. bonds and higher U.S. equity risk (VIX: +7.12%), e.g., the IPOX® 100 U.S. (ETF: FPX) added +1.66% to -1.85% YTD, outpacing the U.S. benchmarks. (Relative) strength extended to markets abroad with the IPOX® International (ETF: FPXI) and IPOX® Europe (ETF: FPXE) surging +3.20% to -4.55% YTD and +2.29% to +0.59% YTD, respectively. Gains extended to IPOX® Markets across Asia-Pacific.

European Growth Investing with the “FPXE” ETF since 2018:

IPOX® StockWatch:  Abroad, gains across several high-profile portfolio holdings after quarterly updates drove some of the good showing last week, including Canadian based infrastructure software maker Lightspeed POS (LSPS US: +19.32%), Singapore-based e-commerce platform operator Sea (SE US: +13.68%), Swedish video games maker Embracer (EMBRACB SS: +10.59%), Amsterdam-traded payments processor Adyen (ADYEN NA: +8.45%) and Chinese biotech Zai Lab (ZLAB US: +7.73%). Amid a rebound in the sectors last week, healthcare and software/security exposure drove some of outsized returns in the IPOX® 100 U.S. (ETF: FPX), including educational software maker Roblox (RBLX US: +16.28%), Chicago-based health care services provider Oak Street Health (OSH US: +13.29%), online security services provider CrowdStrike (CRWD US: +10.47%), life sciences diagnostics firm 10X Genomics (TXG US: +10.00%) and Karuna Therapeutics (KRTX US: +7.19%), a developer of therapies for chronic mental health disorder. Negative post-earnings momentum pushed dating platform operator Bumble (BMBL US: -5.53%) and mortgage finance firm Rocket Cos. (RKT US: -2.31%) to fresh post-IPO lows.

Select IPOX® Indexes Price Returns (%) 2020 Last Week YTD
IPOX® Indexes: Global/International
IPOX® Global Super Liquid (IPGL50) (USD) 66.63 2.94 -3.40
IPOX® International (IPXI) (USD) (ETF : FPXI) 72.15 3.20 -4.55
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 47.32 1.66 -1.85
IPOX® ESG (IPXT) (USD) 42.29 2.19 -2.27
IPOX® SPAC (SPAC) (USD) 48.52 0.74 -2.92
IPOX® Indexes: Europe/Nordic
IPOX® Europe (IPOE) (USD) (ETF: FPXE) 35.14 2.29 0.59
IPOX® Nordic Core (IPND) (EUR) 59.89 3.89 9.90
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 47.50 4.01 -3.33
IPOX® China Core (CNI) (USD) 88.02 5.31 -8.51
IPOX® Japan (IPJP)(JPY) 25.75 2.69 -0.95

* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOM1).

The IPOX® SPAC (SPAC) rose by +0.74% to -2.92% YTD and +44.19% since its 7/30/2020 launch. SPAC news include: 1) 4 SPACs Announced Merger Agreements include (partially): a) DPCM Capital with video game developer Jam Cityb) SCVX with manufacturing automation software startup Bright Machines; and c) Seaport Global with video rental Redbox. 2) 1 SPAC Completed Merger: a) Altimar Acquisition with asset manager Blue Owl Capital/Dyal and Owl Rock (OWL). 3) SPACs reportedly in talks include: a) Virtuoso with General Motor-backed car data provider Wejo; b) Omnichannel with home insurance provider Kin Insurance; c) MedTech with surgical device maker Memic Innovative Surgery; and d) Crescent Cove with Indonesian travel startup Tiket. 4) 7 SPACs debuted last week.

IPO Deal-flow Review and Outlook:    At least 16 IPOs launched across the global markets last week with the average (median) equally weighted deal adding +9.68% (+1.45%) based on the difference between the final offering price and respective Friday’s close. Amongst the largest deals, Swedish oat milk producer Oatly (OTLY US: +32.12%), German open-source software developer SUSE (SUSE GR: +1.65%) and construction management software Procore Technologies (PCOR US: +32.27%) all rose based on final offer. Website firm Squarespace (SQSP US: -0.88%) closed below its reference price on lackluster sentiment for Direct Listings. International IPOs in focus this week include Steinhoff’s European retail arm Pepco Group (PCO PW) in Warsaw, KKR-backed non-bank lender Pepper Money (PPM AU) in Australia’s biggest IPO YTD and JD.com logistic unit spin-off IPO JD Logistics (2618 HK) in Hong Kong. U.S. focus is on the Direct Listing of job search site ZipRecruiter (ZIP US), e.g. Other IPO news include: 1) TGI Fridays to list in London; 2) trading platform Robinhood set to release IPO filing; 3) weight loss app Noom in IPO talks; and 4) Gojek, Tokopedia combined Indonesian tech giant GoTo Group aims for dual listing valued at up to $40B.

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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