The IPOX® Week #683

May 27

IPOX® 100 U.S. (ETF: FPX) falls as U.S. equity index spreads gyrate.
Ferretti (9638 HK) gains anew ahead of potential June Milan listing debut.
IPOX® SPAC (SPAC) rises +1.80%. Select stocks record massive gains.
4 IPOs debut in last week, U.S. deals show solid footing again.

WEEKLY IPOX® PERFORMANCE REVIEW: Most IPOX® Indexes declined ahead of the shortened U.S. trading week, pressured by a continued surge in U.S. yields amid expectations of a pending resolutions to U.S. debt ceiling negotiations, weakness across international markets and big AI-enthusiasm-driven gyrations in U.S. equity index spreads with large-cap technology leading the way anew at the expense of old economy sectors. In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX), benchmark for the performance of the largest and most liquid U.S.-domiciled IPOs and Spin-offs, shed -1.07% to +3.46% YTD, lagging the key U.S. benchmarks across the board. Declines extended to markets abroad, including the IPOX® China (CNI: -2.34%), IPOX® Japan (IPJP: -1.12%) and European exposure captured in the IPOX® 100 Europe (IPOE: -2.27%) and IPOX® Nordic (IPND: -2.01%). Driven by more gains in high-divided paying stocks, the Middle-East focused IPOX® MENA (IPEV: +0.42%) rose against the trend.

GINDEX® PERFORMANCE REVIEW: Acquirers of recent IPOs (IPO M&As) shared the last weeks weakness. While the GINDEX® U.S. (GNDX: -0.85%) significantly outpaced its benchmark, the GINDEX® International (GNDXI: -3.06%) lagged.

IPOX® PORTFOLIO STOCKS IN FOCUS: Amid continued disproportionate gains across large/mega-cap U.S. technology exposure driven by big earnings across select semiconductor makers and the AI-boom, companies including AI-focused 12/2020 IPO C3 AI (AI US: +30.30%) and robotics and automation technology provider de-SPAC Symbotic (SYM US: +24.35%) – pushed by an upward revision in analysts estimated - ranked on top of the IPOX® 100 U.S. (ETF: FPX) leaderboard. High-beta, mostly tech-focused exposure also recorded notable jumps, including electric car maker 11/2021 IPO Rivian Automotive (RIVN US: +12.40%) and 10/2022 Intel IPO spin off automotive technology provider Mobileye (MBLY US: +10.56%). Disappointing earnings and a mute outlook was the cause for a drop in 09/2020 IPO cloud services provider Snowflake (SNOW US: -15.16%), while significant selling across the heath/care and biotech sector at the expense of technology stocks tracked in the Nasdaq 100 (NDX: +3.59%) significantly pressured perceived M&A target 06/2020 IPO Legend Biotech (LEGN US: -9.47%), 04/2021 IPO agilon Health (AGL US: -7.28%), 01/2022 IPO Amylyx Pharma (AMLX US: -7.00%) and IPO M&A heavyweight Regeneron Pharma (REGN US: -4.48%). Across non-U.S. domiciled exposure, we note more explosive gains in 06/2021 IPO Israel-based software solutions provider Monday.Com (MNDY US: +11.63%), while Norway’s 07/2018 web application developer Opera (OPRA US: +8.67%) continued to zoom into unchartered territory on cheap valuation and M&A optimism. Ahead of more deal flow across the MENA region, we note with interest fresh post-IPO highs in a number of our IPOX® MENA (IPEV) portfolio holdings, including 03/2021 IPO Riyadh-traded utility Alkhorayef Water & Power Technology Co. (AWPT AB: +6.52%), 11/2021 out-of-home display advertising company IPO Arabian Contracting Service (ALARABIA AB: +6.52%) and 12/2022 IPO integrated oil firm 7.53% yielder Saudi Aramco Base Oil Co. (LUBEREF AB: +3.91%). Across Asia-Pacific, 10/2022 IPO Japan-traded semiconductor maker Socionext (6526 JP: +15.91%) also continued its stellar run, while speculative arbitrage interest in relation to the pricing potential for its upcoming Milan listing pushed Hong-Kong traded luxury stock Italian boat maker Ferretti (9638 HK: +3.10%) to a fresh weekly post-IPO high. The company is a portfolio holding in the Rakuten Global IPO Fund, an IPOX®-sub advised actively managed mutual fund available to retail and institutional investors in Japan.

GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: 4 IPOs recorded across global IPOs last week. While declines for H.K.-traded IT services provider Edianyun (2416 HK: -3.04%) and Chinese builder Horizon Construction Development (9930 HK: -28.98%) underline the dismal initial trading sentiment for H.K. IPOs, deals domiciled across North America continued to be well received, including filtration solutions provider Atmus Filtration Technologies (ATMU US: +11.03%) and the cross listing of highly successful Canada-domiciled factory automation equipment maker IPO M&A ATS Corporation (ATS US: +4.90%). No significant deals are scheduled to debut this week.

THE IPOX® SPAC (SPAC): The Index of selected 50 constituents trading at both the pre- and post-consummation stage gained for the second week in a row, adding +1.80% to +4.99% YTD. IPOX® SPAC Leaders recording big upside included aforementioned robotics and warehouse automation technology provider Symbotic (SYM US: +24.35%). The index counted ever-volatile South Carolina and Georgia-based single-family homebuilder Great Southern Homes, now known as United Homes Group (UHG US: -36.99%), as its worst performing portfolio holding of last week. Other SPAC news from last week: 1) 3 SPACs Announced Merger Agreement include PayPal founder Peter Thiel and Pacific Century Group founder Richard Li backed Bridgetown Holding (BTWN US: -0.07%) with Singapore-based fintech MoneyHero (previously known as Hyphen Group). 2) 1 SPAC Completed Business Combination as Roth CH Acquisition IV completed its merger with solar energy company Tigo Energy (TYGO US: +0.09%). 3) 1 SPAC announced and/or completed liquidation. 4) 3 penny stocks deSPACs including Embark Technology (EMBK US: -6.08%), Apexigen (APGN US: +33.17%) and Desktop Metal (DM US: +2.34%) received buyout offers though all at terms significantly lower than respective pre-merger valuations, respectively. 5) 1 new SPAC launched last week in the U.S.