The IPOX® Week, September 28th, 2020
September 28, 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]
| 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
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