The IPOX® Week, September 28th, 2020

  • IPOX 100 U.S. (ETF: FPX) extends YTD gain. Other IPOX Indexes trade mixed as IPOX China (CNI) slumps.
  • IPOX Japan (IPJP) closes week at all-time high as specialty tech surges. IPOX SPAC (SPAC) declines after big run-up.
  • More deals lined up as Palantir (PLTR US) and Asana (ASAN US) set to launch Direct Listing. Brazil set for wave of deals.

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]

IPOX-linked ETFs (FPX, FPXI, FPXE) Movers (Last Week in %):
CARVANA CO 23.35 NANO-X IMAGING LTD -18.35
FREEE KK 17.25 POWERLONG -14.41
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
ZOOM VIDEO 13.17 HAIDILAO -10.15
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

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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