The IPOX® Week #666
IPOX® 100 U.S. (ETF: FPX) soars +3.92%, well outpaces S&P 500.
IPOX® Europe (ETF: FPXE) gains anew as select small caps surge.
IPOX® SPAC (SPAC) gains +0.49%. No U.S. SPACs launched last week.
German hosting firm IONOS launches $590m IPO next week.
WEEKLY IPOX® PERFORMANCE REVIEW: All major IPOX® Indexes surged amid the shortened trading week in East Asia due to the Lunar New Year. Amid a steady bond market, signs of easing inflation and notably lower volatility (VIX: -6.75%), U.S. equities extended their recent gains ahead of next week's anticipated FED rate hike announcement and big tech earnings reports. The growth-heavy IPOX® 100 U.S. (ETF: FPX) surged +3.92% to +8.41% YTD, taking +204 bps. from the S&P 500 benchmark (ETF: SPY) YTD. In Europe, the IPOX® Europe (ETF: FPXE) rose +1.90%, outperforming the lagging STOXX Europe 50 (SX5L: -0.06%) anew and drawing even to +7.40% YTD. Globally, we are also noticing stellar performance in the super liquid, large cap-heavy IPOX® Global 50 Index (IPGL50: +3.83% to +9.46% YTD), while the international innovation proxy, the IPOX® International (ETF: FPXI) jumped by +2.40% (+8.24% YTD) on the continued rally in Chinese equities. Here, the IPOX® China (CNI) added +2.93% to +17.44% YTD. While the IPOX® Japan (IPJP: +2.15%) rose as well, the Middle East-focused IPOX® MENA (IPEV: -0.19%) fell slightly.
IPOX® PORTFOLIO STOCKS IN FOCUS: The IPOX® 100 U.S. (ETF: FPX) was led by EV maker Rivian (RIVN US: +22.18), which jumped together with the recovery of rival Tesla. Other leaders included software firm Cloudflare (NET US: +16.47%) and oil & gas firm Highpeak Energy (HPK US: +12.70%), which rose after announcing that it is seeking a buyer. Transplantation firm Transmedics (TMDX US: +7.37%) and biotech Amylyx (AMLX US: +11.01%) reached new post-IPO highs. Biotech Inari Medical (NARI US: -5.96%) fell as one of their top 10 shareholders reduced their position, selling stocks worth $108m. In the IPOX® Europe (ETF: FPXE), we note more big gains for Swedish metals firm Alleima (ALLEI SS: +27.42%), while German automotive supplier Vitesco Technologies (CTSC GR: +8.88%) surged after reporting earnings and Swiss software firm SoftwareOne (SWON SW: +6.15%) gained amid takeover rumours. Italian electrochemical firm Industrie De Nora (DNR IM: +8.30%) recorded a fresh post-IPO high. Norwegian EV battery maker, 2021 de-SPAC FREYR Battery (FREY US: -14.44%) plunged amid an analyst downgrade at Morgan Stanley. In the IPOX® International (ETF: FPXI), we note outsized gains in Chinese firms returning from the Chinese New Year holiday. The index was led by lithium miner Tianqi Lithium (9696 HK: +18.85%), airport shop operator China Tourism Duty Free (1880 HK: +14.51%) and blue-chip e-commerce platform operator Pinduoduo (PDD US: +12.75%).
GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: 3 sizable IPOs started trading internationally last week, adding +22.62% on average, based on the difference between the final offer price and Friday’s close. 2 companies listed in the U.S.: Chinese online education firm Quantasing (QSG US: +0.80%) rose after raising $41m, while Texas oil & gas firm TXO Energy Partners (TXO US: +10.00%) successfully debuted after raising $100m. In Thailand, plastic surgery hospital operator Master Style (MASTER TB: +57.07%) raised $81m. No sizable IPOs are scheduled for this week. Looking at the week ahead, German internet giant United Internet announced the price range for the Frankfurt IPO of their Warburg Pincus-backed web hosting unit IONOS, which plans to raise up to $590m with trading to start February 8.
OTHER IPO NEWS: 1) U.S. fintech unicorn Stripe hires JPMorgan and Goldman Sachs to explore a liquidity event. The firm mulls an IPO or a private market capital raise within the next 12 months. 2) Mega IPO of Abu Dhabi's Adnoc Gas may now happen as soon as next month after Goldman and BofA give up lead roles. 3) Emirates Global Aluminium, biggest metal producer in the region, is set to go public around Q3. 4) Brazilian oil and gas producer Seacrest Petroleo plans to raise $225m in Oslo IPO this quarter. 5) Airline Virgin Australia set to hire banks for 2023 return to the stock market. 6) Volkswagen mulls IPO of EV charging business. 7) German software giant SAP plans sale of remaining 71% stake in 2021 IPO Qualtrics (XM US). 8) Several firms file for U.S. IPOs including Chinese pet services platform New Ruipeng (RPET US, $100m filing), South Korean social media fan platform Hanryu (HRYU US, $35m filing).
THE IPOX® SPAC (SPAC): The Index, composed of a selected 50 high conviction plays trading at both the pre- and post-consummation stage added +0.49% to +3.17% YTD. IPOX® SPAC Leaders recording upside/downside moves last week include concrete pumping and concrete waste management services provider Concrete Pumping Holdings (BBCP US: +23.27%) surged as the company reported strong earning. Other SPAC news from last week: 1) 1 SPAC Announced Merger Agreement include Denali Capital Acquisition (DECA US: +0.29%) with biopharmaceutical company Longevity Biomedical. 2) 4 SPACs Approved or Completed Business Combination include Jack Creek Investment with aerial firefighting services provider Bridger Aerospace (BAER US: +25.73%). 3) 4 SPACs announced liquidation. 4) No new SPAC launched last week in the U.S.
