The IPOX® Week #637
Headlines
IPOX® Indexes gain strongly as stock win latest round of tug of war.
IPOX® International (ETF: FPXI) re-bounds despite surging US Dollar.
IPOX® SPAC (SPAC) gains as no new SPACs launched last week in the U.S.
Hong Kong set for busy week of IPOs as 10 China-linked deals line up.
IPOX® Performance Review
The IPOX® Indexes rose last week, as equities won the latest round of tug of war amid the surging U.S. Dollar, exceptional U.S. employment numbers driving a sharp rise in U.S. interest rates and the decline in risk (VIX: -7.72%) ahead of key U.S. inflation numbers and the start of U.S. earnings season. In the U.S., the IPOX® 100 U.S. (ETF: FPX) added +2.51% to -30.38% YTD, well ahead of the S&P 500 (ETF: SPY), however, lagging U.S. Technology. Strong sentiment for equities extended to markets abroad with the IPOX® International (ETF: FPXI) adding +0.84% to -24.52% and the IPOX® 100 Europe (ETF: FPXE) jumping +1.70%, while the European equity benchmarks fell.
IPOX® Portfolio Holdings in Focus
In the U.S., oversold high-beta exposure continued to record massive gains, led by IL-based electric car maker Rivian (RIVN US: +24.47%), crypto exchange Coinbase (COIN US: +22.94%), electric car charging station network operator EVGO (EVGO US: +17.94%) and online dating app Bumble (BMBL US: +16.35%). In markets abroad, we note big gains in British online ticket retailer takeover target Trainline (TRN LN: +20.77%) and NL-based energy equipment and solutions provider Alfen Beheer (ALFEN NA: +12.63%), while Madrid-based renewable energy utility Acciona Energia (ANE SM: +5.38%) closed out the trading week at a fresh post-IPO high. A strong week for global biotech also benefited IPOX with Britain’s biotechs Oxford Nanopore Technologies (ONT LN: +20.68%) and Immunocore (IMCR US: +19.58%) leading the way.
Global IPO Deal Flow Review and Outlook
5 sizable IPOs launched internationally last week, with the average equally weighted deal losing -11.88% based on the difference between the final offering price and Friday’s close. International IPOs included Dubai business park developer Tecom (TECOM UH: -12.73%), Chinese medical services provider ClouDr (9955 HK: -11.31%), Greek real estate developer Dimand (DIMAND GA: -3.32%), Malaysian rubber company Seng Fong (SENFONG MK: -9.33%) and Japanese HR consultancy Intloop (9556 JP: -22.71%).
At least 12 IPOs are expected to trade internationally this week with focus on deals in Hong Kong. Wednesday will see two large IPOs, including the $1.71 billion H-Shares offer of Chinese mining company Tianqi Lithium (9696 HK), which reportedly controls half of the global production of lithium, and Chinese wind turbine maker Ming Yang’s issue of global depository shares worth $707m in London (MYSE LI).
Other IPOs lined up in Hong Kong include smart learning services provider Readboy Education (2385 HK), LNG producer Huzhou Gas (6661 HK), IT Services Provider Sinohealth Holdings (2361 HK), medical device maker MicroPort NeuroTech (2172 HK), investment manager Noah Holdings (6686 HK), Retailer MINISO Group (9896 HK), IT services provider BoardWare Intelligence Technology (1204 HK) and logistics firm Deewin Tianxia (2418 HK). Outside Hong Kong, the uplisting of Denmark’s digital bank Nordnet (SAVE SS) and IPO of Danish REIT Swiss Properties Invest (SWISS DC) are scheduled for Thursday.
The IPOX® SPAC Index
The IPOX® SPAC Index (SPAC) rose +1.47% to -22.81% YTD with workforce lodging provider Target Hospitality (TH US: +35.41%) and natural gas explorer HighPeak Energy (HPK US: -4.84%) in focus. Other SPAC news 1) 3 SPACs Announced Merger Agreement include a) HPX Corp. (HPX US +0.00%) with environmental management provider Ambipar and Health Sciences 2 (HSAQ US: +0.00%) with biomed Orchestra BioMed. 2) No SPAC Approved Business Combination last week. 3) 1 SPAC Terminated Merger Agreement include Fintech V (FTCV US: +0.10%) with stock and cryptocurrency online broker eToro. 4) No new SPACs launched last week in the United States.
Other News
Other news include 1) Amazon (AMZN US) takes stake in Just Eat’s (TKWY NA) U.S. food delivery platform Grubhub. 2) Merck & Co. (MRK US) in advanced talks to acquire U.S. biotech Seagen (SGEN US). 3) France to nationalize energy provider EDF (EDF FP amid supply crises. 4) Investment firm General Atlantic mulls IPO. 5) Rakuten (4755 JP) seeks approval to list banking unit. 6) K Bank files for $1 bn IPO in South Korea. 7) GSK (GSK LN) shareholders officially approve spinoff of consumer health business Haleon ahead of planned July 18 listing. 8) Saudi Mall Operator Al Othaim scraps IPO plans. 9) AstraZeneca (AZN LN) to buy biotech TeneoTwo for up to $1.27 bn. 10) Toronto toothbrush maker Brüush files for Nasdaq IPO under ticker BRSH US.
