The IPOX® Week #650
All IPOX® Indexes gain,
IPOX® 100 U.S. continues to
outperform benchmarks.
IPOX® Growth Infusion
soars +3.20%, takes +165
bps. from S&P 500.
IPOX® SPAC (SPAC) climbs
+1.35%, 1 SPAC launched in
the U.S. last week.
High IPO deal flow in MENA
& Asia. Largest 2022 Japan
IPO launches this week.
WEEKLY IPOX® PERFORMANCE REVIEW: All IPOX® Indexes recorded notable gains last week, selectively outperforming major benchmarks. Despite U.S. stocks tumbling on Friday amid tight labor conditions and spiking yields, e.g., the IPOX® 100 U.S. (ETF: FPX) climbed +2.85%, outperforming the S&P 500 (SPX) and Nasdaq 100 (NDX) by a big +129 bps. and +220 bps., respectively. The M&A-focused, large-cap heavy and super-liquid IPOX® Growth Infusion (GNDX: +3.20%) continued its strong relative YTD showing, adding +165 bps. to a massive +746 bps. vs. the S&P 500 (SPX) YTD. The international innovation benchmark IPOX® International (ETF: FPXI) added +0.89%, with gains also being recorded across Asia-Pacific by the IPOX® Japan (IPJP: +2.71%) and IPOX® China (CNI: +1.35%). In Europe, the strong performance of our Scandinavia-based holdings propelled the IPOX® Nordic (IPND: +2.60%) ahead of the IPOX® Europe (IPOE: +0.89%, ETF: FPXE). Finally, amid strong IPO deal flow, big momentum also propelled the IPOX® MENA (IPEV) by +2.23% to +7.32% YTD.
IPOX® PORTFOLIO HOLDINGS IN FOCUS: Amid rising commodity prices (e.g. WTI Crude: +17%), last week’s IPOX® Performance Rankings were dominated by our holdings in the Oil & Gas sector, such as Profrac (PFHC US: +27.55%), Pioneer Natural Resources (PXD US: +18.63%) and Magnolia Oil & Gas (MGY US: +16.10%). Contrary to this, we note the weakness in the renewable energy sector, as solar firms Solaredge (SEGD US: -9.44%) and Sunrun (RUN US: -7.54%), as well as Portuguese renewable energy firm Greenvolt (GVOLT PL: -6.05%) slumped. In the U.K., power producer Drax (DRX LN: -6.74%) has come under fire after a BBC documentary claimed the use of unsustainable forestry methods to produce electricity from Canadian wood pellets. IPOX® International (ETF: FPXI) holding Chinese car maker Li Auto (LI US: -14.95%) also suffered from weak sentiment in the EV sector after Tesla delivery numbers and the Hong Kong IPO of EV firm Leapmotor both disappointed. While our U.S. health care holdings traded flat on average, IPOX® IPO M&A heavyweight Eli Lilly (LLY US: +1.02%) extended its weekly winning streak after its breakthrough weight loss drug Mounjaro was given FDA Fast Track approval status. Newly added IPOX® 100 U.S. (ETF: FPX) stock, payment processor Payoneer Global (PAYO US: +18.84%) also surged after S&P SmallCap 600 inclusion.
GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: 3 sizable IPOs launched internationally last week, with the average equally weighted deal dropping -9.77% based on the difference between the final offer price and Friday’s close. After pricing its $1.3b IPO at the bottom of the range, Chinese battery firm CALB (3931 HK) fell -3.55%. In Switzerland, electrical equipment firm ABB completed the spin-off of $1.5b engine turbocharger unit Accelleron (ACLN SW: -12.97%). In South Korea, real estate investment trust KB Star REIT (432320 KS) plummeted -12.80%.
3 sizable IPOs are planned internationally this week: Abu Dhabi health care provider Burjeel (BURJEEL UH: $300m offer) and medical equipment producer Jenscare Scientific (9877 HK: $29m offer) will start trading Monday. Former Fujitsu-Panasonic chip design business Socionext (6526 JP: $467m offer, largest in Japan YTD) is set to start trading on Wednesday. Other news include: 1) 2018 genetic medicine IPO LogicBio (LOGC US) surges +600% on AstraZeneca buyout offer. 2) Trading firm Sumitomo (4005 JP) offers $2.5b to buy reproductive health care firm Myovant (MYOV US). 3) After successful Porsche (P911 GR) IPO, Volkswagen (VOW3 GR) mulls to list Lamborghini. 4) Thai meat producer Betagro to raise $462m in Bangkok IPO this month. 5) IPOX® U.S. Composite (IPXC) holding Poshmark (POSH US) received $1.2b buy-out offer from South Korean web firm Naver (035420 KS). 6) Two more Saudi firms, oil producer Arabian Drilling ($710m offer) and utility firm Marafiq ($1.2b offer) to go public by month-end. 7) Shareholders of IPOX® 100 U.S. holding, pest control firm Terminix (TMX US) approve merger with UK counterpart Rentokil Initial (RTO LN). 8) IPOX® Europe holding, oil shipping form Euronav (EURN BB) soars on merger deal with tanker operator Frontline (FRO NO).
THE IPOX® SPAC (SPAC) The Index, currently composed of a selected 50 high conviction plays trading at both the pre- and post-consummation stage, added +1.35% to -19.85% YTD. IPOX® SPAC Leaders recording upside/downside moves last week include big gains in E&P company Magnolia Oil & Gas (MGY US: +16.10%), while EV charging solutions provider Wallbox (WBX US: -10.03%) fell. Other SPAC news from last week: 1) 5 SPACs Announced Merger Agreement include ClimateRock (CLRC US: +0.20%) with London-based solar power plants developer Eco Energy World or EEW. 2) 1 SPAC Approved Business Combination include a) Chardan NexTech Acquisition 2 (CNTQ US: -36.05%) with lithium-ion battery manufacturer Dragonfly Energy (DFLI: 10/10). 3) 3 SPACS opted to liquidate include Avanti Acquisition (AVAN US: $10.06/share). 4) 1 SPAC Terminated Merger with Goldenstone (GDST US: 0.00%) with blockchain payment company Roxe. 5) 1 SPAC launched last week in the U.S.
