The IPOX® Week, September 7th, 2020

  • Most IPOX Indexes drop sharply from All-Time Highs as risk spikes ahead of U.S. Futures roll & quarterly expiration.
  • IPOX SPAC Index (SPAC) surges +6.44% as more deals consummate.
  • Saudi Aramco (ARAMCO AB) closes in on post-IPO High.
  • U.S. IPOs set for quiet week. Hong Kong market in focus.

Track the performance of U.S. SPACs live with the IPOX® SPAC (BBG: SPAC, Reuters: .SPAC): The liquid IPOX SPAC (SPAC) added +6.44% last week, outperforming the S&P 500 (SPX) and Russell 2000 (RTY). IPOX SPAC news include: 1) Volkswagen-backed EV battery maker QuantumScape to merge with Kensington Capital Acquisition; 2) biopharmaceutical company Clene Nanomedicine to merge with Tottenham Acquisition I; 3) competitive mobile games platform Skillz to go public via Flying Eagle Acquisition; 4) at least 7 SPACs filed last week.

Most IPOX Indexes drop sharply from All-Time Highs as risk spikes ahead of U.S. Futures roll & quarterly expiration. Most IPOX Indexes reversed towards the long U.S. holiday week-end to close with sharp weekly losses as profit taking in the global technology sector after the historic run-up triggered broader benchmark selling amid a spike in equity risk (VIX: +33.93%) and higher U.S. yields. In the U.S., e.g., the FANG-free IPOX 100 U.S. (ETF: FPX) dropped by -3.23% to +15.05% YTD, lagging the S&P 500 (SPX), benchmark for U.S. stocks, by -92 bps. Declines were broad-based with the average (median) equally-weighted stock dropping -3.85% (-3.41%) last week, lagging the market-cap weighted IPOX 100 U.S. Index.

Weakness extended to select IPOX Indexes tracking non-U.S. domiciled exposure, including the International (ETF: FPXI) which fell by -4.07% to +42.06% YTD. Stocks with most downside focus here included European-domiciled exposure such as application software makers Sinch (SINCH SS: -11.31%) and TeamViewer (TMV GY: -10.42%), Dutch payment processor Adyen (ADYEN NA: -7.31%) as well as investment firm Prosus (PRX NA: -7.31%). Non-technology stocks helped to mitigate the portfolio from sharper losses, including Chinese consumer staple China Feihe (6186 HK: +7.15%), integrated oil producer 12/2019 IPO Saudi Aramco (ARAMCO AB: +2.86%), Mexico tequila maker Becle SAB (CUERVO MM: +2.67%) and Japans logistics firm SG Holdings (9143 JP: +2.07%).

Select IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) -2.94 27.93 38.33
IPOX® International (IPXI)* (USD) (ETF: FPXI) -4.07 31.37 42.06
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) -3.23 29.60 15.05
IPOX® ESG (IPXT) (USD) -2.47
IPOX® SPAC (SPAC) (USD) 6.44
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) -4.79 34.55 16.66
IPOX® Nordic (IPND) -4.67 38.52 31.38
IPOX® 100 Europe (IPOE)* (USD) -5.22 30.97 11.80
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) -1.36 4.41 28.42
IPOX® China (CNI) (USD) -1.98 26.31 52.22
IPOX® Japan (IPJP)** (JPY) 2.96 37.91 11.68

* 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 %):
ZOOM VIDEO 23.60 SHOP APOTHEKE EUROPE -23.50
PARADOX INTERACTIVE AB 20.95 ADC THERAPEUTICS SA -19.43
MYOKARDIA INC 9.13 FASTLY INC – CLASS A -14.52
XIAOMI CORP 8.89 CARVANA CO -14.39
SELECTQUOTE INC 8.60 HELLOFRESH SE -14.39
TRATON SE 7.95 INARI MEDICAL INC -14.00
CHINA FEIHE LTD 7.15 ROCKET COS INC -13.55
SAFEHOLD INC 5.89 BILL.COM HOLDINGS INC -13.22
DOW INC 5.54 CLOUDERA INC -13.16
CROWDSTRIKE HOLDINGS 5.52 SCHRODINGER -12.95

IPO Deal-flow Review and Outlook: General Atlantic-backed Brazilian drugstore chain Pague Menos rose on below-range IPO. U.S. sees another quiet week ahead. HK market in focus. Only 3 firms went public across the eligible global markets, with the average equally-weighted deal adding +2.38% based on the difference between final offer price and respective Friday’s close. PE-backed drugstore chain Pague Menos (PGMN3 BZ: +22.12%) gained after pricing below range, while real estate developer Lavvi (LAVV3 BZ: -9.47%) debuted below offer. While there are no U.S. IPOs scheduled amid the long Labor Day weekend, Hong Kong is expecting Chinese bottle water giant Nongfu Spring (9633 HK) and U.S.-listed fast-foot restaurant operator Yum China (9987 HK) to raise more than $3 billions in total. Warburg Pincus-backed Brazilian pet shop chain Petz (PETZ3 BZ) is also lined up to go public this week. Other IPO news include: 1) PE-backed publisher Springer Nature to revive €1B+ Frankfurt IPO; 2) Apparel maker Madewell withdraws IPO filing; 3) KKR-backed cybersecurity unicorn KnowBe4, $6B+ worth dating app Bumble eye for IPO; 4) $10B+ valued PE-backed e-commerce site Wish, telemedicine firm GoodRx file for IPO; 5) Saudi Arabia’s grocery chain BinDawood plans to list on Tadawul.

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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