The IPOX® Week #685
IPOX® 100 U.S. (ETF: FPX) gains anew, taking 163 bps. from bullish S&P 500.
IPOX® MENA resurges after outperformance in select services holdings.
IPOX® SPAC (SPAC) gains +3.93%. No SPAC launches in U.S. last week.
Thyssenkrupp expected to launch IPO of $4b hydrogen unit Nucera this week.
WEEKLY IPOX® PERFORMANCE REVIEW: Sustained positive momentum propelled the IPOX® Indexes to another week of outsized gains over respective benchmarks. In the U.S., movements in the bond market were minimal, with long-term treasury yields staying below the key 4% level, ahead of PPI numbers on Tuesday and another Fed meeting this week. The S&P 500 benchmark (ETF: SPY; +0.39%) officially entered bull market territory, getting beaten by the IPOX® 100 U.S. (ETF: FPX) for a second week, as our growth-focused index pulled ahead, adding +1.78% to its +9.17% YTD performance.
In Europe, the IPOX® Europe (ETF: FPXE) rose +0.70% to +7.33% YTD, performing better than the STOXX 50 Europe benchmark (SX5L: -0.35%) as the Eurozone was reported to have entered a recession.
Across non-U.S. domiciled exposure, the IPOX® International (ETF: FPXI) gained anew, climbing +2.30% to +3.94% YTD as recovery in the IPOX® China (CNI: +3.11%) continued and the IPOX® Japan (IPJP: +1.15%) reached yet another all-time high, as tech sector portfolio holdings (e.g. chip maker Socionext) maintain stellar performance. The IPOX® MENA (IPEV: +2.86%) returned to strength as select holdings advanced, especially in the service sector (e.g. education, financial services).
Our recently-launched biotech-focused IPOX® Health Innovation Index (IPHI: +0.57%) edged higher, now outperforming the iShares Biotechnology ETF (IBB US) by +358 bps. and the S&P 500 Health Care Sector GICS Level 1 Index (S5HLTH) by +221 bps. since launch.
GINDEX® PERFORMANCE REVIEW: U.S.-domiciled and global acquirers of recent IPOs (IPO M&As) gained last week, taking the GINDEX® U.S. (GNDX: +1.82%) and the GINDEX® International (GNDXI: +0.87%) higher.
IPOX® PORTFOLIO STOCKS IN FOCUS: In the IPOX® 100 U.S., Internet-of-Things (IoT), vehicle monitoring specialist Samsara (IOT US: +4.59%) stood out again, after surging +28.59% the week prior. Biotech Ventyx Bioscience (VTYX US: -4.65%) fell after the firm’s director sold $1.4m worth of shares. In the IPOX® Europe (ETF: FPXE), Swiss sports shoemaker On Holding (ONON US: +5.43%) surged after receiving a buy rating from analysts at UBS. Italian hydrogen production equipment firm Industrie De Nora (DNR IM: +5.53%) climbed to a new high after receiving a Double-A ESG rating from MSCI. Swedish pharma firm BioArctic (BIOAB SS +5.83%) also reached a new post-IPO high as its Alzheimer drug, developed with Eisai and Biogen, nears FDA approval. Belgian food chemicals service provider Azelis Group (AZE BB: -4.40%) was announced to join the STOXX Europe 600 Index. In the IPOX® International (ETF: FPXI), Saudi consulting services firm Elm (ELM AB: +25.79%) shot to a new post-IPO high after announcing talks to buy a stake in consulting firm Thiqah from Saudi’s PIF, which is seen as move to speed up Elm’s digital portfolio development. Yokohama-based SoC chipmaker Socionext (6526 JP: +11.86%) came second, surging to +252.19% YTD without an end in sight.* South Korean EV battery giant LG Energy Solution (373220 KS: +3.05%) was called one of the biggest beneficiaries of the U.S. Inflation Reduction Act by Citi, as the firm announced plans to build a $4.3 billion battery production plant together with car maker Hyundai in Bryan County, Georgia.
*Correction: in our previous edition of the IPOX® Week, we mentioned that Socionext surged +396% YTD, however this reflected the firm’s performance since IPO, which is now at +460%.
GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: No sizable international IPOs started trading last week. Two listings are expected to go public next week: Monday: Skin-focused pharma firm Cutia Pharmaceuticals (2487 HK, $59m) is set to launch in Hong Kong. Tuesday: Electroplating specialist Kunshan Dongwei Technology (KUDO SW, $105m) joins the growing number of Chinese firms listing in Switzerland.
THE IPOX® SPAC (SPAC): The Index of a selected 50 constituents trading at both the pre- and post-consummation stage added +0.95% to +5.98% YTD. IPOX® SPAC Leaders recording upside moves last week included workforce lodging firm Target Hospitality (TH US: +6.30%) and warehouse automation company Symbotic (SYM US: +4.61%), which reached a new post-deSPAC high. Concrete pumping firm Concrete Pumping Holdings (BBCP US: -4.97%) fell after missing earnings estimates. Other SPAC news from last week: 1) SPACs announcing merger agreements included Clover Leaf Capital Corp. (CLOE US: +0.09%) with ticketing platform Kustom Entertainment in $222m deal, Blue Ocean Acquisition Corp (BOCN US: +0.38%) with Taiwanese media company TNL Mediagene in $275m deal, Power & Digital Infrastructure II (XPDB US: +0.39%) with water harvesting firm Montana Technologies in $500m deal. 2) 1 SPAC completed business Combination as Rice Acquisition Corp II completed merger with energy tech firm NET Power (NPWR US: +26.89%), which is backed by South Korean conglomerate SK Group. 3) No new SPAC launched last week in the U.S.
THE IPOX® NEWS: 1) Turkish chemicals producer We Soda expected to raise $800m in London. 2) UK fintech CAB Payments eyes London IPO at $1.3b valuation. 3) German steelmaker Thyssenkrupp expected to launch Nucera hydrogen unit IPO this week, $4b valuation expected. 4) U.S. sports bar brand Twin Peaks could fetch up to $1b in IPO. 5) Romanian utility firm Hidroelectrica gears up for Europe’s biggest IPO this year, targeting $2.1b. 6) South Korean robot maker Doosan Robotics plans to file for a domestic IPO this month, aims to raise $300m. 7) Australian chemicals distributor Redox has priced its IPO at $266m, the country’s largest offer YTD.
For the latest IPO News follow us on Twitter @IPOX_Schuster
