IPOX® 100 U.S. (ETF: FPX) extends YTD gain: Big weakness in most markets abroad on renewed COVID-19 anxiety and a stronger U.S. dollar alongside elevated equity risk (VIX: +4.27%) did little to derail the positive sentiment for U.S. IPOs with the asset allocation- focused IPOX 100 U.S. (ETF: FPX) adding +1.41% to +16.94% YTD, extending the YTD lead vs. the S&P 500 (SPX) to +1485 bps.
The underlying for the $1.5 billion “FPX” ETF was propelled by sharp gains in specialty holdings (after select updates) including auto vending machine operator Carvana (CVNA US: +23.35%) and next generation technology providers Zoom Video (ZM US: +13.17%) and Peloton (PTON US: +8.95%). A big week for Japan-traded IPOX exposure with the IPOX Japan (IPJP) closing the week at a fresh all-time high was not able to fully compensate for the weakness in Europe- and China-linked exposure tracked in the IPOX International (ETF: FPXI) with the portfolio shedding -2.98% to +39.35% YTD last week. Most notable remains the surge in select Japan-linked (tech) exposure, with a big corporate action (including a stock split) propelling leading logistics firm IPOX International (ETF: FPXI) holding SG Holdings (9143 JP: +13.37%) and momentum in global software exposure driving accounting software maker Freee (4478: +17.25% ) to fresh post-IPO highs, respectively.
IPOX® SPAC Index update (SPAC): The liquid IPOX SPAC (SPAC) fell -5.99% last week to +13.32% since its 07/30 live launch. SPAC news include: 1) Pontiac, Michigan-based United Wholesale Mortgage (UWM) to combine with Gores Holdings IV making the largest SPAC deal size of $16B+; 2) Electric vehicle charging station company ChargePoint to merge with Switchback Energy Acquisition; 3) Legacy Acquisition to merge with e-commerce company Onyx Enterprises to replace previously terminated agreement with Hong Kong-based advertising firm Blue Impact; 4) Streaming platform Quibi reportedly exploring potential SPAC merger; 5) 8 SPACs traded last week with more in pipeline.
|Select IPOX® Indexes Price Returns (%)||Last Week||2019||2020 YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global (IPGL50) (USD)||-0.57||27.93||37.13|
|IPOX® International (IPXI)* (USD) (ETF: FPXI)||-2.98||31.37||39.35|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||1.41||29.60||16.94|
|IPOX® ESG (IPXT) (USD)||0.75||–||–|
|IPOX® SPAC (SPAC) (USD)||-5.99||–||–|
|IPOX® Indexes: Europe/Nordic|
|IPOX® 30 Europe (IXTE) (EUR)||-0.86||34.55||20.65|
|IPOX® Nordic (IPND)||-1.98||38.52||33.33|
|IPOX® 100 Europe (IPOE)* (USD)||-3.21||30.97||12.47|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||-0.67||4.41||31.81|
|IPOX® China (CNI) (USD)||-6.06||26.31||42.42|
|IPOX® Japan (IPJP)** (JPY)||4.58||37.91||17.99|
* 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]
|CARVANA CO||23.35||NANO-X IMAGING LTD||-18.35|
|HELLOFRESH SE||17.22||ARCONIC CORP||-12.94|
|OAK STREET HEALTH INC||14.27||EVER SUNSHINE LIFE.||-10.77|
|SG HOLDINGS CO LTD||13.37||XIAOMI CORP||-10.57|
|BANDWIDTH INC||12.64||ONCOPEPTIDES AB||-10.08|
|MERCELL HOLDING AS||11.54||DWS GROUP||-9.76|
|AI INSIDE INC||10.67||SUN* INC||-9.68|
|FIVERR INTERNATIONAL||9.70||KOOLEARN TECH||-9.41|
IPO Deal-flow Review and Outlook: At least 22 firms IPO’d across the global markets last week, with the average (median) equally weighted deal adding +20.71% (+7.12%) based on the difference between final offer and respective Friday’s close. Prescription drugs platform GoodRx (GDRX: +57.70%), small-cap plant-based food company Laird Superfood (LSF US: +104.55%) and clinical stage precision oncology firm PMV Pharmaceuticals (PMVP US: +108.39%) all rose strongly. Abroad, German leisure vehicles manufacturer Knaus Tabbert (KTA GR: -0.52%) and KKR-backed military supplier Hensoldt (5UH GR: -7.17%) debuted poorly. Lined up for this week are big data unicorn Palantir (PLTR US), enterprise collaboration software firm Asana (ASAN US), KKR-backed sporting goods retailer Academy Sports & Outdoors (ASO US) and Bain-backed data center operator Chindata (CD US). Brazil is also set to be with busy with real estate subsidiary Melnick (MELK3 BZ), Cosan’s oil & gas services subsidiary Compass Gas e Energia (PASS3 BZ) and credit bureau Boa Vista Servicos (BOAS3 BZ) lined up. Other IPO news include: 1) Amazon-backed London food delivery firm Deliveroo and car insurance start-up Root Insurance in preliminary IPO talks; 2) Korea’s Kakao Bank begins IPO process; 3) JD.com to spin-off its health unit in HK IPO; 4) Chinese budget household goods retailer Miniso files $1B U.S. IPO.
Track global deal flow live on: https://bit.ly/32zolmG
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