The IPOX® Week #643
IPOX® 100 U.S. declines as S&P 500 completes Textbook Technicals.
IPOX® Growth Infusion outperforms as energy, large pharma lead.
IPOX® SPAC hit by profit taking in high beta as no SPACs launch last week.
4 sizeable deals IPO last week, China Tourism Group Duty Free lined up.
WEEKLY
IPOX® performance review: Most IPOX® Indexes
followed the benchmarks lower during August expiration week, as the S&P
500 (SPX) completed a remarkable +17.41% rally from the June expiration lows by hitting its key
200-day moving average Tuesday before renewed bond weakness, dollar strength,
profit taking and big weakness amongst high-beta (unseasoned) stocks ahead of
Jackson Hole turned Momentum into the week-end. In the U.S., e.g., the
broad-based diversified IPOX®
100 U.S. (ETF: FPX) shed -2.11% to -24.48% YTD, lagging the S&P 500 (SPX), however, outperforming
the Nasdaq 100 (NDX). Amid the renewed surge in the U.S. dollar (EURUSD:
-2.16%), weakness extended to
non-domiciled exposure tracked in the IPOX® International
(ETF: FPXI). We note another good week for the IPOX® MENA (IPEV), which
tracks deal flow across the MENA region with technology stocks propelling the
portfolio towards an all-time High Thursday. The outperformance in the more
defensive parts of the market, including energy and large-pharma, drove the IPOX® GINDEX
(GNDX) to a great relative week, declining -0.43% to -5.91% YTD.
IPOX®
Portfolio holdings in focus: Amid earnings and big IPO M&A activity across sectors,
top of the list in the IPOX®
100 U.S. (ETF: FPX) ranked nutritional supplements seller Bellring Brands (BRBR US: +11.23%) which rose toward its
post-IPO high after a JP Morgan upgrade and after completion of a secondary
which contributed to soaring trading volume, recently. Stand-outs
amongst (unseasoned) technology stocks dodging last week slump in the sector by
reporting strong earnings included CA-based back-office software maker Bill.com
(BILL US: +10.56%). In IPOX® Portfolio holdings domiciled abroad, we
also note the fresh post-IPO high in 02/22 IPO Saudi-based and Tadawul-traded
software maker Elm (ELM AB: +14.05%), while optimism over increasing travel demand pushed
TUMI-owner, luggage maker, H.K.-traded IPO M&A Samsonite International
(1910 HK: +13.61%) to a fresh multi-year High. Norway’s warehouse robots technology provider 10/21 IPO Autostore
(AUTO NO: -11.57%) ranked amongst the worst performing firms on the week,
driven by somewhat lackluster quarterly numbers and
big overhang related to Japan’s Softbank Group, its (still) largest
shareholder.
global
ipo deal flow review and outlooK: 4 sizeable IPOs launched last week, with the average equally
weighted deal gaining +77.79% based on the difference between the final offering price and
Friday’s close. The deals included two Saudi-domiciled and Tadawul-traded
firms, bottled water company Naqi Water (NAQI AB: +26.96%) an IT consulting company
Saudi Networkers Services (NETWORKE AB: -5.21%). Thursday saw the U.S.
IPO of Hong Kong B2B e-commerce firm GigaCloud
Technologies (GCT US: +291.92%), while renewable energy firm Thachang
Green Energy (TGE TB: -2.50%) listed in Thailand on Friday.
This week, 4 sizable IPOs are scheduled to launch
internationally. Monday: South Korean car-sharing service SOCAR
(403550 KS: $79m offer). Tuesday: Malaysian payment solutions provider Starbox (STBX US: $25m offer). Wednesday:
Chinese real estate management services firm Suxin
Joyful Life Services (2152 HK, $31m offer). Thursday: Travel
retailer China Tourism Group Duty Free (1880 HK, $2.1b offer).
Other news include: 1) IPOX® 100 Europe
(ETF: FPXE) and IPOX®
International (ETF: FPXI) portfolio holding, AI Cybersecurity firm Darktrace
(DARK LN), surges +35% on takeover talks with Thoma
Bravo and reports of rival buyers. 2) IPOX® International (ETF:
FPXI) heavyweight Aramco (ARAMCO AB) plans to spin-off multiple units. 3)
CFO of IPOX® 100 Europe
(ETF: FPXE) holding Sanofi (SAN FP) says sell-off amid Zantac litigation
threats is “grossly overdone”. 4) IPOX® 100 U.S. (ETF: FPX) stock Keurig
Dr. Pepper (KDP US) ends talks to buy Vital Pharmaceuticals,
parent of Bang Energy drinks. 5) IPOX® 100 Europe
(ETF: FPXE) portfolio holding EQT (EQT SS) offers to buy skin care firm Karo
Pharma (KARO SS). 6) U.S. slot machine maker and 2018 IPO PlayAGS (AGS US) surges on takeover interest by Inspired
Entertainment (INSE US). 7) U.K. premium fashion retailer Ted
Baker (TED LN) jumps on takeover by Reebok-owner Authentic Brands. 8)
Software firm Unity (U US) slumps after rejecting $20b merger offer by AppLovin (APP US). 9) Hedge fund Third
Point buys stake in Disney (DIS US), calls for spin-off of sports
network ESPN. 10) Just Eat (TKWY NA) surges after announcing sale
of $1.8b stake in Latin American JV iFood to IPOX®
portfolio holding Prosus (PRX NA). 11)
Qatar-backed sports media firm Group One mulls. U.S. IPO after $1.35bn
valuation. 12) Madison Square Garden (MSGE US) plans unit spin-offs.
THE
IPOX® SPAC (SPAC). The index, currently
composed of a 50 high conviction plays trading at both the pre- and
post-consummation stage, declined by -4.07% to -13.49% YTD. IPOX® SPAC Leaders recording notable
upside/downside moves last week included oil and natural gas company HighPeak Energy (HPK US: +7.35%), while EV fast
charging network EVgo (EVGO US: -19.03%)
slumped. Other SPAC news from last week: 1) 2 SPACs Announced Merger
Agreement include LIV Capital II (LIVB US: +0.50%) with Mexico-based
fintech Covalto. 2) 1 SPAC Approved
Business Combination include Silver Crest (SLCR US: +0.50%) with fast food and
coffee chain Tim Hortons China (THCH US: TBA). 3) 6 SPACs
terminated merger deal include a) Bright Lights (BLTS US: +0.17%) with men’s grooming
products e-commerce firm MANSCAPED and b) 10X Capital Venture II
(VCXA US: +0.05%) with crypto mining company PrimeBlock.
5) No SPAC launched last week in the U.S.
