The IPOX® Week #636
Headlines
IPOX® Indexes decline last week, gain Friday to have strong start to Q2.
IPOX® International (ETF: FPXI) beats benchmark for 5th week in a row.
IPOX® adds innovative IPOX® MENA to live portfolio line-up.
Week of July 4th global IPO and Deal Review and Outlook.
IPOX® MENA Launch
We are pleased to add the IPOX® MENA Portfolio to our live portfolio line-up. Composed of a select number of highly liquid New Listings trading across the MENA region, the portfolio provides global investors with an innovative one-stop portfolio solution to track the ‘going public’ effect associated with the burgeoning New Listings Market in Saudi Arabia and in the United Arab Emirates. For further info, please contact us on info@ipox.com.
Chart of the Week: IPOX® MENA Launch
Total Return from 07/23/2018 to 07/02/2022: +232.67%
Weekly IPOX® Performance Review
On the back of another week of surging global bonds and a weakening Euro currency, increasing recessionary fears for the U.S. economy with key commodities trading to the downside, most IPOX® Indexes followed the benchmarks to close lower last week. In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX) gained +1.30% Friday, however, shed -3.34% last week, in between the performance of the S&P 500 (SPX) and the tech-heavy Nasdaq 100 (NDX), which lost -2.21% and -4.30%, respectively. Declines extended to non-U.S. domiciled exposure, with Dollar strength weighing on the IPOX® International (ETF: FPXI), dropping by -1.24%, however, outperforming its benchmark for the 5th week in a row. We also note the good relative week for IPO M&A tracked in the IPOX® GINDEX (GNDX) with strong earnings of select holdings driving the portfolio to a weekly gain of +88 bps. vs. the S&P 500 (SPX).
Global IPO Deal Flow
9 sizeable IPOs launched internationally last week, with the average equally weighted deal adding +9.04% based on the difference between the final offer price and Friday’s close. One IPO launched in the U.S., Canadian battery metals explorer Ivanhoe Electric (IE US: -23.32%). International IPOs included Japanese care home business SUNWELS (9229 JP, +50.05%), Saudi developer Retal Urban Development (RETAL AB: +2.50%), Japanese financial service provider M&A Research Institute (9552 JP: +74.74%), Japanese advertiser MicroAd (9553 JP: -29.15%), Italian financial intermediary Generalfinance (GFI IM: +0.28%), Chinese cloud software firm TI Cloud (2167 HK: -0.08%), Italian manufacturer of hydrogen production machinery De Nora (DNR IM: -3.70) and South Korean chipmaker NEXTCHIP (396270 KS: +10.00%). 4 IPOs are expected to start trading this week, including the 1) $454m offer of Dubai developer TECOM (Ticker pending, Tuesday), 2) Chinese medical services company ClouDr (9955 HK, $85m offer size, Wednesday), 3) Malaysian Rubber producer Seng Fong (SENFONG MK: $27m offer size, Thursday) and 4) Japanese HR and consulting firm Intloop (9556 JP, $31m offer size, Friday).
Other news include: 1) BMW-backed Swedish Northvolt mulls $12b IPO within two years. 2) Tianqi Lithium (002466 CH) plans $2b listing of H-Shares. 3) World’s largest travel retailer CTG Duty Free (601888 CH) said to revive $3 billion Hong Kong listing. 4) Novartis (NOVN SW) leans towards IPO of $25b generics arm Sandoz. 5) Reliance Industries (RIL IN) to raise up to $8 billion to buy UK pharmacy Boots out of Walgreens (WBA US). 6) Aramco-backed Hyundai Oilbank gets approval for December IPO. 7) Pfizer (PFE US) and 10/2021 SPAC-listing Roivant Sciences form new company to advance anti-inflammatory drugs, Priovant Therapeutics. 8) Blackstone weighs listing of $2b software firm IBS. 9) Highway restaurant firm Autogrill (AGL IMI) in talks to from travel retailer leader with Duty-Free Giant Dufry (DUFN SW).
Click here to see IPO Deal Flow
The IPOX® SPAC Index (SPAC)
The Index fell -3.61% to -23.93% YTD. IPOX® SPAC Leaders included bowling ally operator Bowlero (BOWL US: +5..97%), while Swedish EV maker Polestar (PSNY US: -26.69%) fell. Other SPAC news from last week: 1) 1 SPAC Announced Merger Agreement include a) American Acquisition Opportunity Inc (AMAO US: 0.00%) with royalty company Royalty Management. 2) 2 SPACs Approved Business Combination include a) Northern Lights Acquisition (NLIT US: +28.43%) with cannabis markets financial services provider Safe Harbor Financial Group (SHFS US: TBA) and b) Agrico Acquisition with vertical farming firm Kalera (KAL US: -57.93%). 3) 1 SPAC announced liquidation include a) G3 VRM Acquisition (GGGV US: -0.20%) at ca $10.15/share. 4) 3 SPACs Terminated Merger (Partnership) include a) USHG Acquisition (HUGS US: -0.20%) with Panera Brands. 5) Fintech Acquisition V (FTCV US: +0.10%) reportedly to end merger plan with stock and cryptocurrency online brokerage eToro. 5) No new SPAC launched last week in the U.S.
