The IPOX® Week #674
IPOX® 100 U.S. (ETF: FPX) drops slightly as small caps remain under pressure.
Newly picked IPOX® portfolio holdings lead IPOX® ETFs after rebalancing.
IPOX® SPAC (SPAC) gains
+1.33%. 1 U.S. SPAC
launched last week.
7 IPOs launch this week with largest listings in MENA and Japan.
WEEKLY IPOX® PERFORMANCE REVIEW: After reassurances from U.S. regulators to encourage calm in the financial markets, U.S. equities traded slightly higher last week as volatility subsided (VIX: -14.78%). Amid the confounding interplay between the Federal Reserve’s 25 bps. hike, further decreasing U.S. treasury yields and a weakening U.S. Dollar, bond traders called for the Fed to pivot amid recession fears. While most of the IPOX® Indexes gained, the growth-heavy IPOX® 100 U.S. (ETF: FPX) fell marginally, dropping -0.11% to +1.86% YTD, weighed down by the continuing pressure on small-cap stocks amid recession fears. Abroad, we saw renewed strength in the respective indexes. Here, the IPOX® Europe (ETF: FPXE) climbed +2.48% to +4.24% YTD as concerns in the banking sector started to ease after the UBS-Credit Suisse takeover. The IPOX® International (ETF: FPXI) added +1.62 to +0.59 YTD, propelled by several holdings from our Middle East-focused IPOX® MENA (IPEV: +1.48%), which rebounded as the region remains highly active with new sizable IPOs coming to market.
NEW IPOX® PICKS LEAD INDEXES: After the quarterly rebalancing of the IPOX® Indexes became effective Monday, we are pleased to see that our major indexes were led by new picks that have shown outsized returns in their first week of joining our portfolios. The IPOX® 100 U.S. (ETF: FPX) was topped by the new additions of enterprise AI software provider C3 AI (AI US: +16.88%) and 2022 De-SPAC, robotics warehouse automation company Symbotic (SYM US: +15.81%), which reached a new high. Among the new portfolio holdings in the IPOX® Europe (ETF: FPXE), Norwegian web browser developer Opera (OPRA US: +10.49%) and compatriot discount retailer Europris (EPR NO: +6.88%) were among the top holdings, while the IPOX® International (ETF: FPXI) was led by the newly added South Korean battery component maker EcoPro (247540 KS: +16.60%), which surged after announcing a joint venture with SK Group, the country’s second-largest chaebol industrial conglomerate after Samsung.
IPOX® PORTFOLIO STOCKS IN FOCUS: In the IPOX® 100 U.S. (ETF: FPX), high-protein and nutrition products maker Bellring Brands (BRBR US: +11.36%) surged after an analyst upgrade and gained a new post-IPO high alongside pharma firm Regeneron Pharmaceuticals (REGN US: +9.68%), which peaked after hitting a home run with trial results for asthma treatment Dupixent. Analysts suggest that the drug could add $3.5 billion in sales after it was successfully trialed for chronic obstructive pulmonary disease (COPD), becoming the first significant treatment advance for the lung disorder in more than a decade. Payment processing provider Block (SQ US: -17.98%) fell after being targeted by short sellers at Hindenburg Research amid allegations of inflated user numbers. In the IPOX® Europe (ETF: FPXE), Swiss shoemaker On (ONON US: +46.51%) catapulted to a new 52-week high after beating earnings expectations. Austrian bank Bawag (BG AV: -8.95%) remains under pressure amid the Credit Suisse fallout, while Danish maker of blockbuster diet drugs Ozempic/Wegovy Novo Nordisk (NOVOB DC: +7.30%), also represented in the IPOX® International, keeps breaking new records, ending the week on another post-IPO high. Other major gainers in the IPOX® International (ETF: FPXI) included Tencent-backer Prosus (PRX NA: +8.87%), while Chinese agriculture e-commerce app firm Pinduoduo (PDD US: -19.56%) fell after Google issued Malware warnings for app installations from unofficial Android marketplaces.
GLOBAL IPO DEAL FLOW REVIEW: 3 sizable IPOs started trading last week, gaining +26.33% based on the difference between the final offer price and Friday’s close. Japanese women’s magazine publisher Halmek (7119 JP: +67.50%, $31m offer) and South African food producer Premier Group (PMR SJ: +11.48%, $198m) gained, while Philippine renewable energy producer Altenergy (ALTER PM: +0.00%, $27m) traded flat.
UPCOMING DEALS: 7 sizable listings are planned for this week. Monday: Japanese virtual reality software developer Cover (5253 JP, $69m offer size) and Abu Dhabi big data analytics firm Presight AI (PRESIGHT UH, $496m). Tuesday: Domino’s Pizza China franchisee DPC Dash (1405 HK, $91m) and Japanese digitalization consultancy Monstarlab (5255 JP, $27m). Wednesday: Chinese maritime commodities shipping firm Seacon (2409 HK, $62m) and Japanese bank SBI Sumishin Net Bank (7163 JP, $366m). Friday: Biodegradable plastics maker China Treasures New Materials (2439 HK, $43m).
OTHER IPO NEWS: 1) Japan’s Rakuten Bank to go public in $811m Tokyo spin-off on April 21, country’s largest listing since Softbank. 2) French car maker Renault seeks €10b valuation for Ampere EV unit, plans Q4 Paris IPO. 3) Swiss-Chinese agrichemicals business Syngenta nears world’s biggest 2023 IPO with $10b Shanghai listing. 4) Indonesia’s Harita Nickel targets top-end price for $660m IPO, country’s largest this year. 5) Turkey-based WE Soda, world’s largest maker of lithium battery ingredient and glass component soda ash, plans London IPO for H2 2023.
THE IPOX® SPAC (SPAC): The Index, currently composed of a selected 50 high conviction plays trading at both the pre- and post-consummation stage rose +1.33% to +3.19% YTD. IPOX® SPAC Leaders recording upside/downside moves last week include Walmart-invested AI-powered robotics warehouse automation company Symbotic (SYM US: +15.81%) rose on strong momentum. While Switzerland-based inflammation diseases focused MoonLake Immunotherapeutics (MLTX US: -9.16%) fell on volatile trading week. Other SPAC news from last week: 1) 3 SPACs Announced Merger Agreement include Stratim Cloud Acquisition (SCAQ US: +0.20%) with oil & gas company equipment rental provider Force Pressure Control. 2) 4 SPACs Approved Business Combination include JATT Acquisition with biotech Zura Bio (ZURA US: +173.67%). 3) 4 SPACs announced or commenced liquidation. 4) 1 SPAC launched last week in the U.S.
