The IPOX® Week #694
IPOX® Indexes trade lower as traders react to inflation data, climbing yields.
German companies are set to open up IPO market, with $20b in the pipeline.
FPX holding Kenvue joins S&P 500. FPXI/FPXE’s Novo surges on Wegovy.
IPOX® SPAC (SPAC) drops -2.14% as SPACs beat IPOs. No SPACs debut.
WEEKLY IPOX® PERFORMANCE REVIEW: While the large basket of our IPOX® U.S Composite Index (IPXC: +0.14%) gained slightly last week, most IPOX® Indexes traded lower, as earnings season is coming to a close. In the U.S., markets fell amid a slide in tech megacaps as traders digesting mixed economic data. Despite an unexpected drop in U.S. consumer inflation expectations, rising bond yields across the board put pressure on equities, as US producer price inflation data picked up. The IPOX® 100 U.S. (-3.83%, ETF: FPX) fell to +10.79% YTD, after select holdings reported mixed quarterly results. European stocks were affected by U.S. data, as well as sticky inflation numbers out of France and Spain. Meanwhile, UK GDP data surprised, gaining 0.5% in June, while British house prices saw the steepest fall since 2009 last month. The IPOX® Europe (-1.17%, ETF: FPXE) slid to +9.09% YTD as the listings of several German firms are set to open the IPO window with companies seeking combined valuations of up to $20 billion (read more here). Globally, reports on China’s weakening economy as well as plans to prohibit U.S. tech investments in the country weighted on the IPOX® China (CNI: -4.46%) as well as China-domiciled holdings in the IPOX® International (ETF: FPXI), which fell -2.36% to +4.00% YTD.
GINDEX® PERFORMANCE REVIEW: Our innovative portfolios with focus on acquirers of recent IPOs (IPO M&As) traded mixed last week. The GINDEX® U.S. (GNDX) slid -0.73% to +12.53% YTD, while the GINDEX® International (GNDXI: +0.40%) was supported by the surge of Danish pharma-IPO acquirer Novo Nordisk.
IPOX® PORTFOLIO STOCKS IN FOCUS: The IPOX® 100 U.S. (ETF: FPX) was led by eye care pharma firm Apellis Pharmaceutical (APLS US: +32.04%), which surged on reassuring comments by analysts at BofA, following the recent steep decline on side effect news. Solar tracker firm Array Technologies (ARRY US: +30.55%) climbed after earnings. Video game developer Roblox (RBLX US: -20.41%) tumbled on reports of lower daily user numbers during last week’s earnings. On the contrary, online casino game maker SciPlay (SCPL US: +15.24%) reached a new post-IPO high. Johnson & Johnson’s consumer healthcare spin-off Kenvue (KVUE US: +0.81%) gained slightly after announcing that the firm is set to join the S&P 500. The IPOX® Europe was topped by diabetes pharma specialist Novo Nordisk (NVO US: +16.99%), which also led the IPOX® International last week, and soared to a new all-time high after reporting clinical results on positive cardiovascular outcomes from their Wegovy/Ozempic diet drug. British private members social club Soho House (SHCO US: +16.01%) rose as membership revenue exceeded estimates. Plastic surgery medical device maker Establishment Labs (ESTA US: -17.50%) fell after reporting disappointing Q2 results. Swedish biotech Bioarctic (BIOAB SS: +11.34%) climbed as its Alzheimer’s drug development partner Biogen’s (BIIB US) $7.3b acquisition of Reata Pharmaceuticals is seen as sign of an uptick in M&A activity in the sector.
GLOBAL IPO DEAL FLOW REVIEW AND OUTLOOK: 4 sizable IPOs started trading last week, dropping -4.19% from offer price to Friday’s close. South Korean solid-state drive (SSD) computer storage maker Fadu (440110 KS: -0.97%, $147m), the first fabless chip unicorn startup in the country, was the largest offering. Indonesian operator of foreign retail brand stores (e.g. Garmin, DJI) Sinar Eka Selaras (ERAL IJ: -4.10%, $27m) and Japanese manufacturer of conveyor belt systems JRC Co. (6224 JP: -19.45%, $47m) both fell on debut.
This week, the U.S. listing of China-domiciled, Cayman-registered pharma firm Adlai Nortye (ALN US) is the only significant IPO launch. The offer size of the cancer specialist was downsized from $115m to $72m, as the firm said to privately place depository shares worth $40m with Japanese chemical conglomerate Nippon Kayaku. Also, an unnamed investor has expressed interest to purchase shares worth $50m, representing about 69% of the offer.
THE IPOX® SPAC (SPAC): The Index of 50 constituents trading at both the pre- and post-consummation stage tumbled -2.14% to +17.99% YTD. IPOX® SPAC Leaders recording the most upside moves last week was bitcoin miner Bitdeer Technologies Group (BTDR US: +37.34%) as it soared on Q2 result. Warehouse automation company Symbotic (SYM US: -18.80%) fell on profit taking and insider sale. Other SPAC news from last week: 1) 5 SPACs Announced Merger Agreement include Mountain & Co. I Acquisition (MCAA US: +0.55%) with professional football club FC Barcelona’s content creation platform Barca Media. 2) 3 SPACs Completed Business Combinations include MedTech Acquisition completed merger with liver cancer drug developer TriSalus Life Sciences (TLSI US: +15.83%). 3) 2 SPACs announced liquidation. 4) No new SPAC launched last week in the U.S. 5) Vietnamese EV firm VinFast (VFS US) is set to start trading this week after shareholders of Hong Kong-based Black Spade Acquisition approved the SPAC merger.
For the latest IPO News follow @IPOX on Linkedin or @IPOX_Schuster on 𝕏.
