The IPOX® Week #648
IPOX® 100 U.S. (ETF: FPX) sheds -6.75% amid global recession fears.
IPOX® Japan (IPJP) takes +274 bps. from S&P 500 on BOJ plan to bolster JPY.
IPOX® SPAC (SPAC) falls with benchmarks, 1 SPAC launch this week.
$75bn Porsche IPO debuts on Thursday, largest listing in Europe since 2011.
WEEKLY IPOX® performance review: The IPOX® Indexes declined last week,
weighed down by fears that the ongoing policy of central bank tightening would
increase the likelihood of a recession. After two consecutive weeks of relative
outperformance over benchmark indexes, the IPOX® 100 U.S. (ETF: FPX)
shed -6.75% to -33.15%, YTD, underperforming the S&P 500 (SPX) and Nasdaq 100
(NDX) by -212 bps. and -213 bps.,
respectively. While negative sentiment extended to markets abroad, we noted a
strong relative outperformance of the IPOX® Japan (IPJP) against
the S&P 500 (+274 bps.) after the Bank of Japan announced a program to prop up their own
currency through purchases for the first time since 1998. Likewise, the IPOX® International (ETF:
FPXI) also outperformed the S&P 500 by +12 bps. On the contrary, the IPOX® 100 Europe (ETF:
FPXE) recorded the lowest weekly performance since the invasion of Ukraine (-9.27% to -45.39%, YTD) as the British government
announced the biggest tax cuts in 50 years, fueling concerns of heightened
inflation leading to higher rates and a deeper recession, which sent the
British Pound closer to parity against the U.S. Dollar (GBP-USD: -5.14%).
ipox® PortFolio holDings in focus: Companies in the Energy sector led the decline
among global IPOX® Portfolio Holdings amid recession fears, including hydrogen
firm Everfuel (10/2020 IPO, EFUEL NO: -17.10%), solar energy equipment
producer SolarEdge (10/2015 IPO SEDG US: -16.65%) as well as oil & gas firms such as Highpeak
Energy (10/2021 IPO, HPK US: -16.48%) and Magnolia Oil & Gas (07/2018 IPO MGY US: -16.43%). Strong
performance was seen in select health care holdings: Payment management firm Change
Healthcare (06/2019 IPO, CHNG US: +7.18%) gained as U.S. DoJ loses court fight
aiming to block acquisition by UnitedHealth. IPO M&A play Eli
Lilly (LLY US: +0.83%) gained on analyst coverage of promising diabetes and weight loss drug Mounjaro. New holding, recent GSK consumer
healthcare spin-off Haleon (HLN LN: +6.96%) led the IPOX® 100 Europe Index
(ETF: FPXE) after beating earnings, while the IPOX® International Index (ETF:
FPXI) was led by Indonesian super app GoTo (GOTO
IJ: +9.09%) as analysts at Macquarie see +20% upside. In the U.S., the IPOX® 100 U.S. Index (ETF:
FPX) was led by the recent addition of cybersecurity education provider KnowBe4
(04/2021 IPO, KNBE US: +23.93%), which surged after receiving a buyout offer by private equity firm Vista
Equity.
global ipo deal flow review and
outlooK: 2 sizable
IPOs launched internationally last week with the average equally weighted deal
gaining +13.39% based on the difference between the final
offer price and Friday’s close. Deals abroad included Malaysian REIT AME (AMEREIT
MK: +1.77%) and Japanese management consulting firm FP
Partner (7388 JP: +25.00%). This week, 7 sizable offers are expected to launch internationally:
South Korean AI computing firm Openedges (394280
KS: $26m offer) is expected on Monday. Japan-domiciled real estate
development firm Lead Real Estate (LRE US: $30m offer) plans to start
trading on Nasdaq on Tuesday. On Thursday, Volkswagen’s blockbuster
IPO of luxury car maker Porsche (P911 GR) aims to raise up to $8.2
billion in Germany. Other IPOs launching on Thursday include Chinese EV
maker Leapmotor (9863 HK: $1b offer), China
Vanke’s property management unit Onewo (2602
HK: $784m offer) and Dubai toll road operator Salik
(SALIK UH: $1b offer). Video compression software developer Beamr Imaging (BMR US: $36m) to launch Friday.
Other news include: 1)
New IPOX® 100 U.S. (ETF:
FPX) constituent, 04/2022 IPO cybersecurity training provider KnowBe4 jumps
on bid from Vista Equity. 2) Healthcare provider Cano Health (2020
IPO) explores sale after receiving buyout interest from Humana, CVS.
3) Rocket Pharmaceuticals to acquire 2021 de-SPAC, heart disease gene
therapy firm Renovacor. 4) British
online furniture store, 06/2021 IPO Made.com tumbles after putting
itself up for sale. 5) Softbank plans for Arm-Samsung partnership
fuel acquisition rumors ahead of planned IPO. 6) Ionos, PE-backed web hosting/cloud unit of German
internet services firm United Internet mulls 2023 IPO at possible $5b market
cap. 7) Instacart plans to focus IPO on selling employee shares. 8) South
Korean $7 billion fintech K Bank gets approval for IPO. 9) German
steel maker Thyssenkrupp reiterates IPO plans of hydrogen unit Nucera, albeit not in current market conditions. 10)
Yogurt maker Chobani hires new CFO, says IPO option is not abandoned
after withdrawing plans earlier this month. 11) CEO of MinRes’s lithium unit exits in surprise move,
ahead of planned U.S. listing. 12) Credit Suisse considers split of
investment bank into three parts.
The IPOX® SPAC (SPAC) The Index, currently composed of a
selected 50 high conviction plays trading at both the pre- and
post-consummation stage, fell -4.98% to -20.63% YTD. IPOX® SPAC Leaders recording
upside/downside moves last week include battery maker FREYR Battery (FREY
US: +1.61%) rose on Morgan
Stanley’s “Top Pick” recommendation, while fantasy sports and sports betting
company DraftKings (DKNG US: -19.46%) slumped on broad high-growth stocks sell off.
Other SPAC news from last week: 1) 3 SPACs Announced Merger Agreement
include Avalon Acquisition (AVAC US: -0.20%) with financial services company The Beneficient Company Group. 2) 1 SPAC Approved
Business Combination include a) AEA-Bridges Impact (IMPX US: -23.35%) with
Harley-Davidson’s electric motorcycle unit LiveWire
(LVWR: 9/27). 3) 4 SPACS opted to liquidate include 2 of Chamath
Palihapitiya’s flagship SPACs Social Capital Hedosophia
IV (IPOD US) and VI (IPOF US) both at $10.01/share. 4) 1
SPAC launched last week in the U.S.
