The IPOX® Week, November 25, 2019

  • Ahead of start of U.S. Christmas shopping season, most IPOX Indexes trade little changed. IPOX Japan
  • Stocks linked to disruption in the Automotive/Transport sector gain: Carvana reaches all-time High, Uber & Lyft
  • IPO Deal-flow Review & Outlook: Macron’s success – France’s state-owned lottery operator Française des Jeux surges in Paris debut. Alibaba set for Hong King listing.

Ahead of start of U.S. Christmas shopping season, most IPOX Indexes trade little changed, IPOX Japan surges. Stocks linked to disruption in the Automotive/Transport sector gain: Carvana reaches all-time High, Uber & Lyft recover. Amid stable U.S rates and risk (VIX US: +3.24%), the IPOX Indexes finished last week little changed, with the IPOX 100 U.S. (ETF: FPX US)  dropping by -0.08% to +26.45% YTD, +25 bps. ahead of the S&P 500 Index (SPX),  benchmark for U.S. stocks. Muted trading extended to most markets outside the U.S., with another big week for the IPOX Japan (IPJP) marking an exception. In the IPOX 100 U.S. (ETF: FPX) stocks linked to disruption in the Automotive/Transport sector recorded notable gains with TX-based car vending machine operator USD$12.6 billion Carvana (CVNA US: +10.06%) closing the week at a post-IPO high, while ride sharing platform operators Uber (UBER US: +10.34%) and Lyft (LYFT US: +7.95%) recovered for a second week. Amid earnings, significant moves amongst individual portfolio holdings had little impact on the IPOX China  Core (CNI: -0.34%) last week, with e-commerce platform operator Pinduduo (PDD US: -20.51%), consumer Financial Qudian (QD US: -39.47%), educational software provider GSX Techedu (GSX US: +24.55%) and biotech Innovent Biologics (1801 HK: +12.55%) trading at the opposite spectrum of the weekly individual portfolio holdings return distribution.  Driven by big gains in software makers Oro (3983 JP: +15.44%) and eSOL (4420 JP: +13.25%), we note another good week for the IPOX Japan (IPJP), extending its Y/Y performance lead vs. its benchmark to a large +756 bps.

IPOX® International Investing with the “FPXI” ETF since 2016:

ETF Performance Update: IPOX 100 U.S. (IPXO)-linked First Trust U.S. Equity Opportunities Fund (ETF: FPX) closed at +27.18% YTD last week, while the IPOX International (IPXI)-linked First Trust International Equity Opportunities Fund (ETF: FPXI) and the IPOX 100 Europe (IPOE)-linked First Trust IPOX® Europe Equity Opportunities Fund (ETF: FPXE) closed at +26.75% and +26.46% YTD, respectively.

Select IPOX® Indexes Price Returns (%) Last Week 2018 2019 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) -0.34 -11.37 23.55
IPOX® International (IPXI)* (USD) -0.31 -13.41 24.66
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) -0.08 -8.80 26.45
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 0.22 -13.46 26.74
IPOX® Nordic (IPND) -0.86 -15.45 28.63
IPOX® 100 Europe (IPOE)* (USD) -0.30 -16.60 23.23
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 0.54 -3.21 5.02
IPOX® China (CNI) (USD) -0.34 -22.83 20.96
IPOX® Japan (IPJP)** (JPY) 2.79 -13.70 7.65

* 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 (IPOZ9). ** Live since 07/18.

IPO Deal-flow Review & Outlook: Macron’s success – France’s state-owned lottery operator Française des Jeux surges in Paris debut. Alibaba set for Hong Kong listing. At least 7 firms debuted in the accessible markets last week**, with the average (median) equally-weighted company adding +12.79% (+14.07%) based on the difference between the final offering price and Friday’s close. French state lottery operator Française des Jeux (FDJ FP: +14.07%) surged on its high-profile debut, marking the largest IPO in France since 2005, and setting the stage for more IPOs of French state-owned enterprises and companies. MegaChips spin-off, Santa Clara-based silicon MEMS producer SiTime (SITM US) also rose, while Chinese bitcoin miner Canaan (CAN US: -0.22%) and properties REIT Alpine (PINE US: 0.00%) closed the week flat. Amid the shortened Thanksgiving holiday trading week, no U.S. IPOs are expected to commence trading. Focus is solely on Alibaba’s (9988 HK) HK$88 billion (ca. $11.2 billion) Hong Kong Listing. The Chinese e-commerce giant will kick off on Tuesday, marking the world’s largest listing YTD. While Alibaba lifts confidence for Hong Kong IPOs with a 40x retail oversubscription, Czech’s consumer finance lender Home Credit dropped its Hong Kong IPO plan amid a deepened valuation cut, while South African gold mine operator HeavenSend Gold also postponed its listing. Other IPO news last week included: a) Warburg Pincus-backed Brazilian pet store Petz mulls IPO, b) Thai state-owned distressed debt manager Bangkok Commercial Asset Management (BAM TB) set to raise up to $888 million, making it the country’s second largest common stock IPO ever, and c) delivery platform DoorDash and lodging host Airbnb reportedly consider a Direct Listing over a traditional IPO.
**term applies

Track Priced & Upcoming IPOs on https://ipox.com/ipox-deals/

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