The IPOX® Week, October 5th, 2020

  • IPOX tops weekly equity indexes performance rankings.
  • IPOX 100 U.S. (ETF: FPX) surges +3.99% to +21.60% YTD.
  • IPOX International (ETF: FPXI) adds +1.43% to +41.34 YTD.
  • IPOX 100 Europe (ETF: FPXE) gains +2.15% to +15.88% YTD.
  • Lackluster trading debut of U.S. direct listings tech firms Asana (ASAN US) and Palantir (PLTR US).

IPOX 100 U.S. (ETF: FPXI) tops weekly U.S. equity indexes performance rankings with +3.99% gain. Most IPOX Indexes rose last week, benefiting from momentum for exposure seemingly insulated from the global economic vows inflicted by the COVID 19 pandemic, indicated by Friday’s U.S. employment numbers. Top of the list ranked the IPOX 100 U.S. Index (ETF: FPX) which added +3.99% to +21.60% YTD, better than when compared to the main U.S. benchmarks, and extending the YTD lead vs. the S&P 500 (SPX) to +1746 bps. The index, which currently pools a total market cap of $2.6 trillion linked to 100 U.S. domiciled New Listings across

U.S. IPO Investing with the “FPX” ETF since 2006

industry groups, was propelled by big gains in specialty holdings including SPAC Michael Jordan-backed DraftKings (DKNG US: +19.91%), integrated utility New Fortress Energy (NFE US: +17.91%), adtech The Trade Desk (TTD US: +17.61%) and building sub-contractor TopBuild (BLD US: +13.39%), while communications platform operator Zoom Video (ZM US: -2.87%) fell after six weeks of gains. Strength in Europe also propelled the IPOX International (ETF: FPXI), adding +1.43% to +41.34% YTD.

IPOX® SPAC Index (SPAC) update: The IPOX SPAC (SPAC) Index fell -0.42% last week to +11.69% since its 07/30/20 launch, lagging the major U.S. benchmarks. SPAC news include: 1) self-driving cars developer Velodyne Lidar (VLRD US) completed its merger with Graf Industrial; 2) electric truck maker Hyliion (HYLN) closed its merger with Tortoise; 3) Churchill Capital III confirmed to close its merger with Hellman & Friedman-held healthcare cost management company MultiPlan; 4) SPACs announced/in-talk with merger targets on the week include LifeSci with early clinical-stage biopharmaceutical company Vincera , Mountain Crest with the iconic Playboy, Oaktree with telehealth startup Hims & Hers, and RMG with EV batteries maker Romeo Systems; 5) 15 SPACs IPO’d with at least 12 more new SPACs filings, including billionaire Charles Ergen-backed $1B CONX.

Select IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 2.15 27.93 40.08
IPOX® International (IPXI)* (USD) (ETF: FPXI) 1.43 31.37 41.34
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 3.99 29.60 21.60
IPOX® ESG (IPXT) (USD) 2.39
IPOX® SPAC (SPAC) (USD) -0.42
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 2.00 34.55 23.05
IPOX® Nordic (IPND) 4.03 38.52 38.70
IPOX® 100 Europe (IPOE)* (USD) 3.04 30.97 15.88
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) -0.47 4.41 31.19
IPOX® China (CNI) (USD) 2.92 26.31 46.58
IPOX® Japan (IPJP)** (JPY) -1.89 37.91 15.76

* 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 %):
DraftKings Inc 19.91 Sun* Inc -12.87
Twilio Inc 18.50 Swedish Orphan -9.70
New Fortress Energy Inc 17.91 AI inside Inc -6.74
Trade Desk Inc/The 17.61 Ping An Healthcare -6.28
Datadog Inc 14.16 ViacomCBS Inc -5.28
Safehold Inc 13.95 XP Inc -5.04
Scatec Solar ASA 13.69 Pinduoduo Inc -3.94
Shift4 Payments Inc 13.60 Dynatrace Inc -3.91
TopBuild Corp 13.39 Eli Lilly and Co -3.36
Farfetch Ltd 12.96 Zoom Video -2.87

IPO Deal-flow Review and Outlook: Another 16 companies IPO’d across the accessible global markets last week, with the average (median) equally weighted deal adding +9.78% (+3.73%) based on the final offer (reference) price and respective close. Two unicorns debuted in the U.S. as direct listings: While data analytics giant Palantir (PLTR US: +26.90%) and work management software developer Asana (ASAN US: +23.38%) closed above their (inaccessible) reference price Thursday, sentiment for both deals deteriorated during their 2nd trading day, however. Traditional U.S. IPOs traded mixed with commercial-stage medical device maker Pulmonx (LUNG US: +120.53%) performing well, while KKR-backed Academy Sports & Outdoors (ASO US: -0.08%) fell. Abroad, Brazilian credit bureau Boa Vista Servicos (BOAS3 BZ: +16.80%) rose despite Compass Gas e Energia’s IPO cancelation while Asian markets were quiet on Mid-Autumn festival. Focus during this week is on deals abroad with Lithuania state-owned utility firm AB Ignitis (IGN LI) to launch Baltic region’s largest IPO. Other IPO news include 1) Toshiba’s memory chipmaker Kioxia postponed the largest IPO in Japan this year; 2) gaming platform Roblox, mortgage lender Caliber Home Loans, Russian online retailer Ozon, online cinema ivi and Intel 2017 spin-off cybersecurity vendor McAfee prep for U.S. IPO.

Track global deal flow live on: https://bit.ly/32zolmG

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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