The IPOX® Week #665
IPOX® 100 U.S. (ETF: FPX) trades lower along S&P 500 benchmark.
Global IPOX® Indexes show stronger performance than U.S. counterparts.
IPOX® SPAC (SPAC) falls
-0.60%. No U.S. SPACs
launched last week.
Several IPOX® holdings reach post-IPO high; 3 new +$100m U.S. IPO filings.
WEEKLY IPOX® PERFORMANCE REVIEW: The IPOX® Indexes finished the shortened equity options expirations week with mixed results. Amid a weaker bond market, hawkish comments from Federal Reserve and European Central Bank officials and an increase in volatility (VIX: +8.17%), U.S. equities traded lower as the S&P 500 (SPX: -0.65%) benchmark managed to move past its 200-day moving average after rallying Friday. As tech stocks gained amid news of layoffs and Netflix's (NFLX US: +2.90%) increase in subscribers, our growth-heavy IPOX® 100 U.S. (ETF: FPX) traded slightly lower than the S&P 500, losing -0.75% to +4.03% YTD). Globally, we are noticing better performance in our main international indexes YTD (see below). For example, the IPOX® Europe (ETF: FPXE) only fell slightly by -0.15% to +5.62% YTD, while the our global proxy for innovation, the IPOX® International (ETF: FPXI) fell -0.55% to +5.71% YTD. In East Asia, the IPOX® China (CNI: +0.65% to +13.53% YTD) continued to gain, while the IPOX® Japan (IPJP) climbed +2.01% after the Bank of Japan defied market bets and announced the continuation of its low interest rate policy.
IPOX® PORTFOLIO STOCKS IN FOCUS: The IPOX® 100 U.S. (ETF: FPX) was led by life insurance company Jackson Financial (JXN US: +13.27%), food delivery app Doordash (DASH US: +10.85%) and entertainment firm Warner Music Group (WMG US: +9.18%), while transplantation specialist Transmedics (TMDX US: +5.63%) and recent addition GE Healthcare (GEHC US: +2.03%) reached new post-IPO highs. Shale gas firm Profrac (ACDC US: -10.67%) fell as their 2022 acquisition U.S. Well Services had three patents invalidated after a dispute with fracking giant Halliburton. In the IPOX® Europe (ETF: FPXE), defense firm Hensoldt (HAG GR: +13.88%) gained amid news of delivering air defense radars to Ukraine. As Germany opened their first LNG terminal last week, Norway-listed LNG tanker operator Hafnia (HAFNI NO: +9.36%) gained substantially alongside oil shipping firm Euronav (EURN BB: +7.81%). Swedish protein biotech Olink (OLK US: -16.98%) fell sharply, closing the week at the price of their newly announced secondary offering at $20/shr. In the IPOX® International (ETF: FPXI), newly added education firm Koolearn Technology (1797 HK: +13.82%), airport shop operator China Tourism Duty Free (1880 HK: +5.22%) and LNG factory builder Technip Energies (TE FP: +6.06%) all reached new post-IPO highs, while the laggards were led by British Forex fintech Wise (WISE LN: -14.42%), which fell after committing to pass on the benefits of higher interest rates to customers.
GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: 6 sizable IPOs started trading internationally last week, gaining +24.08% on average, based on the difference between the final offer price and Friday’s close. 4 companies listed in Hong Kong: Fruit retailer Pagoda (2411 HK: +5.54%), beauty services provider Beauty Farm (2373 HK: +60.46%), graphite electrode manufacturer Sanergy (2459 HK: +3.12%) and Alibaba-backed music talent agency Yuehua Entertainment (2306 HK: +37.99%). Noble gas supplier TEMC (425040 KS: +4.29%) started trading in South Korea, while energy transformer maker Astor (ASTOR TI: +33.04%) started trading in Turkey. No sizable IPOs are scheduled for this week.
IPO NEWS: 1) Bain Capital mulls IPO of airline Virgin Australia. 2) Chinese pork producer Muyuan and manufacturer Sanhua plan to raise $2.5b in Zurich GDR sales. 3) Greek government plans IPO to sell 30% stake in Athens International Airport. 4) Spanish material firm Cosentino picks banks for summer IPOs at possible $3b valuation. 5) Abu Dhabi National Oil selects banks for mega IPO of LNG unit Adnoc Gas. 6) Several firms file for U.S. IPOs with +$100m offer size: Hypertension drug maker Mineralys (MLYS US), oil & gas producer TXO Energy Partners (TXO US), Chinese LiDAR firm Hesai (HSAI US).
THE IPOX® SPAC (SPAC): The Index, composed of 50 high conviction plays trading at both the pre- and post-consummation stage declined to +2.67% YTD. IPOX® SPAC members with notable moves last week include beaten-down biotech ProKidney (PROK US: +12.34%), amid last week’s positive trial data. Payment data processor Priority Technology (PRTH US: -19.34%) plunged anew despite new partnership announcement. Other SPAC news include: 1) 3 SPACs Announced Merger Agreement include Ross Acquisition II (ROSS US: +0.15%) with Alzheimer’s and Parkinson’s diseases drug developer APRINOIA Therapeutics. 2) No SPAC Approved or Completed Business Combination. 3) Only 1 SPAC announced liquidation. 4) 1 SPAC terminated merger agreement as FoxWayne Acquisition (FOXW US: +4.48%) and Toronto-based dating app developer Clover mutually terminated the deal. 5) While no definitive agreement been signed, Onyx Acquisition I (ONYX US: +0.10%) has announced that it is in advanced discussion with private equity firm Helios Investment Partners to create a listed energy transition infrastructure platform that focuses on natural gas and low-carbon energy infrastructure development in Africa. 5) No new SPAC launched last week in the U.S.
