The IPOX® Week #686
IPOX® 100 U.S. (ETF: FPX) momentum beats S&P 500, climbing +3.15%.
Tech propels IPOX® Japan to +7.87% weekly gain,
Socionext in focus.
IPOX® SPAC (SPAC) drops
-0.38%. 1 SPAC launched in U.S. last week.
Mediterranean food chain Cava surges on debut as IPO sentiment improves.
WEEKLY IPOX® PERFORMANCE REVIEW: Ahead of the shortened U.S. trading week, the IPOX® Indexes climbed yet again, displaying strong outsized gains over respective benchmarks. Better than expected inflation numbers amid the Fed’s pause on interest rate hikes drove momentum across equities, with the diversified IPOX® 100 U.S. (ETF: FPX) closing near the crucial technical 4000 market, adding +3.15% to +12.60% YTD, outperforming the S&P 500 (SPX), benchmark for U.S. stocks. In Europe, the IPOX® Europe (ETF: FPXE) added +2.55% to +10.08% YTD, as the European Central Bank announced to continue rate hikes for now. Across non-U.S. domiciled exposure, the IPOX® International (ETF: FPXI) also surged, adding +2.91% to +6.96% YTD, outperforming the MSCI World ex-USA (MXWOU). Here, we note the continued big gains in the broad-based IPOX® Japan (IPJP: +7.87%), which skyrocketed on strong momentum in select holdings, including chipmaker Socionext. We also note the good week in the IPOX® China (CNI: +4.17%), which has now rebounded for 3 weeks running. Our recently launched biotech-focused IPOX® Health Innovation Index (IPHI: +0.57%) and small- and mid-cap focused IPOX® SMID Index (IXSM: +0.64%) also gained, adding to +9.33% and +9.10% since their March 17 launch, respectively.
GINDEX® PERFORMANCE REVIEW: U.S.-domiciled and global acquirers of recent IPOs (IPO M&As) gained last week, taking both the GINDEX® U.S. (GNDX: +1.51%) and the GINDEX® International (GNDXI: +1.52%) higher.
IPOX® PORTFOLIO STOCKS IN FOCUS: In the IPOX® 100 U.S., outsized returns recorded by stocks in the technology sector, such as enterprise software firm C3.ai (AI US: +20.28%) and programming collaboration platform GitLab (GTLB US: +8.61%), which climbed after earnings. Warehouse automation firm Symbotic (SYM US: +18.87%) was among the top gainers for the second week. Health care firm Agilon Health (AGL US: -16.42%) fell amid insider divesture and broad weakness across U.S. managed care providers on inflation pressures. In the IPOX® Europe (ETF: FPXE), Internet software firm Opera (OPRA US: +12.19%) gained after announcing dividend payments while British luxury car maker Aston Martin Lagonda (AML LN: +11.79%) surged after gaining analyst upgrades amid reports of being a potential M&A candidate. Amid the broad trends towards IPO M&A, Swiss enterprise software firm SoftwareOne (SWON SW: +24.82%) rose after its board rejected a $3.2b buyout offer from private equity firm Bain Capital. Swedish proteomics biotech Olink (OLK US: -14.62%) fell amid a new publication on study results. In the IPOX® International (ETF: FPXI), Yokohama-based SoC chipmaker highly liquid Socionext (6526 JP: +21.06%) extended its big post-IPO run, now having gained an impressive +326.36% YTD and making it one of the best post-IPO runs in recent history. Chinese online giant Alibaba (BABA US: +9.18%) rose amid positive news about the well-being of founder Jack Ma, as well as plans to expand e-commerce site Tmall into Europe.
GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: 4 sizable international IPOs started trading last week, gaining +29.24% from offer price to Friday’s close. In the U.S., Mediterranean restaurant chain Cava Group (CAVA US: +73.41%), almost doubling to $4.2b market cap after pricing above the indicated price range. Bloomberg asked IPOX® CEO Josef Schuster for comment, who said that “The strong pricing for the deal indicates the improved sentiment for higher-quality US domiciled specialty IPOs.” (Read the article here). Other firms who started trading included skin care pharma firm Cutia Pharmaceuticals (2487 HK, +41.42%), the Swiss GDR offer of Chinese electroplating specialist Kunshan Dongwei Technology (KUDO SW: +0.00%) and 3 Turkish firms: 1) Securities brokerage A1 Capital (A1CAP TI: +20.96%). 2) Cross-continental shipping firm Pasifik Eurasia Lojistik (PASEU TI: +33.04%). 3) Financing firm Kalitimevim Tasarruf Finansman (KTLEV TI: +6.63%).
Three sizable offers are expected this week: Monday: Indonesian EV mobility firm Vktr Teknologi Mobilitas (VKTR IJ, $59m offer size). Wednesday: Japanese hospice and nursing home service provider CUC (9158 JP, $89m) and US-based chain of Korean BBQ restaurants GEN Restaurant Group (GENK US, $36m).
THE IPOX® SPAC (SPAC): The Index of a selected 50 constituents trading at both the pre- and post-consummation stage fell -0.38% to +9.87% YTD. IPOX® SPAC Leaders recording upside moves last week included warehouse automation company Symbotic (SYM US: +18.87%), which reached yet another new post-deSPAC high. Concrete pumping firm Concrete Pumping Holdings (BBCP US: +8.13%) recovered after leading last week’s laggards. Other SPAC news from last week: 1) SPACs announcing merger agreements included AP Acquisition Corp. (APCA US: +0.56%) with Japan-based recycled plastics firm JEPLAN in $480m deal; Global Star Acquisition (GLST US: +0.19%) with Delaware-registered South Korean media entertainment holding firm K Enter in $610m deal; Canna-Global Acquisition Corp (CNGL US: +0.09%) with Sydney-based wealth management IT solutions firm New Quantum in $800m deal. 2) SPACs completing merger agreements included Metals Acquisition Corp (MTAL US: -7.87%) with Ex-Glencore asset CSA Copper Mine in Australia. 3) One SPAC launched in the U.S. last week: ESH Acquisition Corp (ESHAU US: +1.10%).
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