The IPOX® Week, September 13th, 2021

  • Ahead of U.S. Futures & Options expiration week, IPOX® Indexes trade mixed. Big secondary offering activity.
  • IPOX® Japan big outlier as index jumps +5.64%, closes week at fresh all-time High.
  • IPOX® SPAC declines fractionally. 5 new SPACs launched in the U.S. last week.
  • U.S. IPO activity set to pick-up as high-profile specialty deals line up for U.S. debut.

WEEKLY Summary:  The IPOX® Indexes traded mixed during the shortened U.S. trading week, weighed by increasingly jittery trading in the broad-based European and U.S. benchmarks as a) global yields held mostly steady, b) risk (VIX: +27.67%) spiked into the weekend and c) broader calls for more consolidation in developed markets equities drove profit taking. Ahead of expiration week and re-balancing, e.g., the IPOX® 100 (ETF: FPX) declined -1.72% to +8.48% YTD, broadly in line with the S&P 500 (ETF: SPY), benchmark for U.S. stocks. Amid renewed weakness in China-linked exposure, declines generally extended to non-U.S. domiciled exposure, including the IPOX® International (ETF: FPXI) and IPOX® 100 Europe (ETF: FPXE). Japanese equities were the big exception: Pending political changes acted as catalyst for a big rally in Japanese equities, with the broad-based IPOX® Japan (IPJP) surging a massive +5.64% to +17.66% YTD, outperforming all other Japanese equity benchmarks.

IPOX® JAPAN (Ipjp) SINCE 07/2018

WEEKLY IPOX® portfolio holDings in focuS: Secondary offering activity associated with IPOX® Holdings experiencing recent big run-ups following strong corporate earnings report clearly weighed on sentiment, including security software services provider McAfee (MCFE US: -24.60%), biotech Maravai LifeSciences (MRVI US:  -19.67%), Israel-based e-commerce solutions provider Global-E Online (GLBE US: -15.52%), U.S. biotech Agilon Health (AGL US: -12.97%), U.S. health care services provider Ortho Clinical Diagnostics (OCDX US: -10.74%)  and Singapore-based technology services provider Sea (SE US: -7.88%)  which tapped  the U.S. market with the sale of a combined $6 billion worth of U.S. shares and convertible bonds, the biggest ever equity offering by a Southeast Asian company.   Select IPOX® Portfolio holdings rallied strongly, with Watertown, MA-based biotech C4 Therapeutics (CCCC US: +11.10%), Japanese online marketplace operator Mercari (4385 JP: +11.07%), innovative U.S. consumer finance company Upstart Holdings (UPST US: +9.37%), hard-hit online U.S. insurance agent Selectquote (SLQT US: +7.79%) and IPOX® heavyweight Japanese telecom and networking services provider 5.34% yielding SoftBank Corp. (9434 JP: +5.39%) leading the way.

Select IPOX® Indexes Price Returns 2020 Last WEEK YTD
IPOX® Indexes: Global/International
IPOX® Global Super Liquid (IPGL50) (USD) 66.63 -1.79 1.79
IPOX® International (IPXI) (USD) (ETF: FPXI) 72.15 -1.35 0.34
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 47.32 -1.72 8.48
IPOX® ESG (IPXT) (USD) 42.29 0.45 14.37
IPOX® SPAC (SPAC) (USD) 48.52 -0.07 -7.38
IPOX® Indexes: Europe/Nordic
IPOX® Europe (IPOE) * (USD) (ETF: FPXE) 35.14 -1.86 13.32
IPOX® Nordic Core (IPND) (EUR) 59.89 -2.63 24.90
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 47.50 2.18 3.29
IPOX® China Core (CNI) (USD) 88.02 -0.93 -25.36
IPOX® Japan (IPJP) (JPY) 25.75 5.64 17.66

* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOU1). *also available In UCITS format in Europe in EUR (EPFX IM,), USD (IPXE LN), and GBP (FPX LN).

IPOX® SPAC INDEX (SPAC): The Index fell -0.07% to -7.38% YTD and +37.58% since its 7/30/2020 launch. SPAC news include: 1) 3 SPACs Announced Merger Agreement: a) Highland Transcend Partners I with Packable and b) Novus Capital II with Energy Vault2) 3 SPACs Approved Business Combinations include: a) Osprey Technology Acquisition with BlackSky (BKSY); b) Rice Acquisition with Archaea Energy (LFG: 9/15) and c) Sustainable Opportunities Acquisition with DeepGreen Metals/The Metals Company (TMC). 3) SPACs terminated combinations: a) Indonesian’s online travel booking unicorn Traveloka reportedly to halt talks with Bridgetown and b) Malacca Straits Acquisition with Asia Vision Network 4) 5 new U.S. SPACs launched.

WEEKLY GLOBAL Deal-flow Review and Outlook: 5 IPOs launched with the average deal adding +28.99%. Saudi Arabia’s Shatirah House Restaurant (BURGERIZ AB: +68.85%), Chinese pub chain Helen’s International (9869 HK: +22.91%) and Australian’s HealthCo REIT (HCW AU: +15.00%) all rose, while the U.S. saw no IPOs. Deals expected this week include sports betting data provider Sportradar (SRAD US), Federer-backed sneaker maker On (ONON US), TSG Consumer-backed coffee chain Dutch Bros (BROS US), Siemens-backed software consultancy Thoughtworks (TWKS US) and KKR-backed digital identity management company ForgeRock (FORG US). Abroad, Korean shipbuilder Hyundai Heavy Industries (329180 KS) is scheduled. Other IPO news include a) Chip designer Imagination Technologies, Russian IT services provider Softline and British genomics company Oxford Nanopore mull London IPOs; b) vehicle glass repairer Cary Group, luxury watch retailer Chronext join European IPO lineup; c) podcast platform Ximalaya and Australian biotech CRO Novotech plan Hong Kong listing; d) medical device maker PHC (Panasonic Healthcare) plans Japan’s largest IPO YTD; e) more Russian companies set to list in the U.S. include car-sharing firm Delimobil, food retailer VkusVill and stock exchange SPB Exchange and f) oil giant ADNOC Drilling unit spin-off and state-owned ports operator Abu Dhabi Ports plan to list.

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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