The IPOX® Week #639
Headlines
IPOX® Indexes surge on earnings, sharp drop in U.S. rates, Dollar.
Following Biden visit to the region, IPOX® MENA soars +5.84%.
IPOX® SPAC (SPAC) gains as no new deals launched last week in the U.S.
GSK’s Haleon (HLN LN) celebrates good first week of trading stand-alone.
IPOX® Performance Review
The IPOX® Indexes surged last week with equities winning the latest round of tug-of-war ahead of the July FED meeting as 30-year U.S. rates closed the week below the key 3% level. The U.S. dollar weakened notably with commodities, equity risk fell (VIX -4.95%) and cryptos had another good week. Some disappointing corporate earnings in key technology growth sectors (SNAP US: -27.11%) weighed on sentiment in U.S. equities towards the weekend, however. All in all, the IPOX® 100 U.S. (ETF: FPX), benchmark for the performance of the U.S. New Listings market, added +2.82% to -29.95% YTD, outperforming the S&P 500 (ETF: SPY), benchmark for U.S. stocks. Exceptionally positive sentiment extended to markets abroad with the IPOX® 100 Europe (ETF: FPXE) adding +5.74%, also benefitting the IPOX® International (ETF: FPXI). Following U.S. president Biden’s visit to the region, explosive gains across select portfolio holdings propelled the super-liquid IPOX® MENA (IPEV) by +5.84% to +3.85% YTD, while the value-tilted IPOX® Growth Infusion (GNDX) added +2.37%. to -11.29% YTD and our Asia-focused strategies also recorded strong gains.
IPOX® Portfolio Holdings in Focus
Amid earnings season and big sector rotation with Health Care and Consumer Staples underperforming, notable moves across our IPOX® 100 U.S. (ETF: FPX) Portfolio Holdings included crypto exchange Coinbase (COIN US: +31.66%), which surged on the big bid for crypto and explosive volume in its recently launched nano-crypto Futures product. We also note the fresh all-time weekly high in Chicago-based Financial Ryan Specialty (RYAN US: +7.11%), which gained following analyst’s upgrades. Sector weakness and profit taking pressured biotechs Legend Biotech (LEGN US: -7.20%), United Therapeutics (UTHR US: -6.09%) and Harmony Biosciences (HRMY US: -4.90%), e.g. Abroad, big strength across our Saudi-traded list of portfolio holdings propelled the IPOX® International (ETF: FPXI), with 10/21 IPO energy firm ACWA Power (ACWA AB: +16.94%), software firm Elm (ELM AB: +11.46%) and agricultural chemicals maker Fertiglobe (FERTIGL DH: +11.01%) leading the way, while key Chinese electric vehicle firm Li Auto (LI US: -10.64%) slumped. Invested in by the IPOX® Capital Management. LLC -run Rakuten Global IPO fund available in Japan, other IPOX® Holdings in focus last week included IPO M&A retailer Frasers (FRAS LN: +33.42%) and Australian biotech Telix (TLX AU: +17.61%).
Global IPO Deal Flow Review and Outlook
Two sizeable IPOs (spin-offs) launched globally last week, with the average equally-weighted deal gaining +1.82% based on the difference between the final offering price and Friday’s close. Best-of-breed GSK consumer unit spin-off Haleon (HLN LN: +3.64%) started trading in London with depository shares (HLN US) trading in New York. Furthermore, renewable energy company OPDenergy Holding (OPDE SM: +0.00%) raised $208 million in a Madrid IPO.
Four global IPOs are expected to commence trading this week. On Monday, top of the list ranks the $1 billion IPO of Financial Thai Life Insurance (TLI TB) in Bangkok on Monday, with Canadian and Brazil-based mineral exploration company Bravo Mining (BRVO CN, offer size $31 million) expected to trade on TSX Venture. Tuesday will see the listing of MENA-focused Domino’s Pizza operator Alamar Foods (ALAMAR AB, offer size $38 million) in the red-hot Saudi market, while Italian photovoltaic storage maker Energy (Ticker pending, offer size $38 million) is expected to list in Milan on Friday.
Other News include: 1) Amazon (AMZN US) extends IPO growth investments with deal to acquire IPOX constituent One Medical (ONEM US, 01/2020 IPO). 2) Aramco-backed Hyundai Oilbank scraps Seoul IPO, citing market conditions. 3) Softbank (9984 JP) to shift Arm’s IPO from London to New York amid political turmoil in the U.K. 4) ABB (ABBN SW) to list EV rapid charging business Accelleron in October after spin-off. 5) Polish Lotos (LTS PW) and PKN Orlen (PKN PW) set to merge to become major oil refinery player. 6) UK postal service Royal Mail (RMG LN) considers restructuring, including separation of units. 7) Financial ANZ (ANZ AU) to buy Suncorp’s (SUN AU) banking operations. 8) Dye & Durham (DND CN) buys Australia’s 2015 IPO Link Administration (LNK AU). 9) Abdrn considers selling private equity business. 10) Swiss Stock Exchange continues to attract dual listings of Chinese companies with three deals last week.
The IPOX® SPAC Index
The Index, currently composed of a selected 50 high conviction plays trading at both the pre- and post-consummation stage, added +1.50% to -21.61% last week. IPOX® SPAC Leaders recording upside moves included nuclear small modular reactor company NuScale Power (SMR US: +23.15%) and bowling lane operator Bowlero (BOWL US: -4.57%). Other SPAC news from last week: 1) 1 SPAC Announced Merger Agreement include a) Larkspur Health Acquisition (LSPR US: +0.00%) with biopharma ZyVersa Therapeutics. 2) 3 SPACs Approved Business Combination include a) CC Neuberger Principal II (PRPB US: -4.30%) with picture content marketplace Getty Images (GETY US: 7/22) and b) ArcLight Clean Transition II with renewable natural gas company OPAL Fuels (OPAL US: -24.22%). 3) 2 SPACs Terminated Merger include a) Fortune Rise Acquisition (FRLA US: +0.00%) with crypto mining firm VCV Power Sigma and b) Aesther Healthcare Acquisition (AEHA US: -0.10%) with automotive component maker United Gear & Assembly. 4) No new SPACs launched last week in the U.S.
