The IPOX® Week, October 12th, 2020

  • Most IPOX® Strategies soar to fresh all-time highs, strength extends across global regions.
  • IPOX 100 U.S.-linked ETF (ticker: FPX) price crosses $100 price mark, launched at $20 in 2006.
  • Asia-Pacific specialty exposure extends big run-up.
  • Poland’s ecommerce giant Allegro (ALE PW) lined up.

Most IPOX Strategies soar to fresh all-time highs, strength extends across global regions. Big momentum in exposure seemingly insulated from Covid-19 inflicted global economic vows and (perceived) corporate actions drove most IPOX Indexes to close the week at an all-time high. In the U.S., e.g., the FANG-free IPOX 100 U.S. (ETF: FPX) added +4.56% to +27.16% YTD, with fund value, starting at $20 in 2006, closing the week above the $100 mark for the first time (unadjusted for dividends). Amid (perceived) corporate actions, outsized returns were driven by a jump in biotech’s and technology-related firms including biotech MyoKardia (MYOK US: +58.47%) and semiconductor maker IPOX heavyweight IPO M&A Marvell Technologies (MRVL US: +12.55%). Big gains extended to markets abroad, including Europe and Asia-Pacific. Here, we note continued (hedge-fund) linked buying of stocks pooled in the IPOX International (ETF: FPXI) and IPOX 100 Europe (ETF: FPXE), such as biotech CRSPR (CRSP US: +23.33%), Tokyo-traded AI application software maker AI Inside (4488 JP: +17.78%), Australian Fintech Netwealth (NWL AU: +16.22%) or accounting software maker Freee (4478 JP: +5.03%). Notable decliner on the

week included biotech Swedish Orphan (SOBI SS: -11.22%).

IPOX® SPAC Index (SPAC) Update: The IPOX® SPAC Index declined -0.93% to +10.66% since its 07/30/20 launch, lagging the major U.S. benchmarks. News include 1) Healthcare cost management firm MultiPlan completed its merger with Churchill Capital III; 2) 3 SPACs announced targets including Stable Road with space infrastructure firm Momentus, Social Capital Hedosophia III with insurtech Clover Health, and Live Oak with bioplastics maker Danimer Scientific; 3) EV-start up Faraday Future is in talks to go public via a reverse merger; 4) 10 more SPACs IPO’d with Chamath Palihapitiya raising another $2.1B in total for three new Social Capital Hedosophia SPACs (IPOD/U, IPOE/U, IPOF/U); 5) At least 17 new SPAC filed to go public.

Select IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 4.16 27.93 45.91
IPOX® International (IPXI)* (USD) (ETF: FPXI) 4.56 31.37 47.79
IPOX® Indexes: United States
IPOX® Composite U.S. (IPXC)* (USD) 4.80 24.65 25.87
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 4.56 29.60 27.16
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 1.90 34.55 25.44
IPOX® Nordic (IPND) 3.43 38.52 43.46
IPOX® 100 Europe (IPOE)* (USD) 3.18 30.97 19.59
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 6.98 4.41 40.35
IPOX® China (CNI) (USD) 5.32 26.31 54.39
IPOX® Japan (IPJP)** (JPY) 7.86 37.91 24.86

* 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]

IPOX-linked ETFs (FPX, FPXI, FPXE) Movers (Last Week in %):
SUN* 21.29 DUCK CREEK -6.11

IPO Deal-flow Review and Outlook: At least 18 firms IPO’d across the accessible global regions last week, with the average (median) equally-weighted deal adding +9.95% (+12.22%) based on the difference between the final offering price and respective weekly close. Oncology biotech Kronos Bio (KRON US: +42.47%) and Chinese online children edutainment firm iHuman (IH US: +33.33%) both debuted strongly in the U.S. Abroad, state-owned maritime shipping company Sovcomflot (FLOT RM: -1.90%) slipped after pursuing the first Moscow IPO since 2017, while chess grandmaster Magnus Carlsen’s Play Magnus (PMGME NO: -14.29%) also fell. Global IPO activity is set to continue at a brisk pace with Poland’s e-commerce giant Allegro (ALE PW), K-pop boyband BTS’s agency Big Hit Entertainment (352820 KS), Goldman Sachs-backed Kazakh banking and fintech firm Kaspi (KSPI LN), and Saudi Arabian supermarket chain BinDawood (BINDAWOO AB) lined up for this week. Other IPO news include: 1) Chinese insurance giant Ping An Group’s fintech arm online wealth management and lending platform operator Lufax files for U.S. IPO at $40B valuation; 2) U.S.-traded video platform Bilibili proceeds with homecoming HK listing.

Track global deal flow live on:

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