The IPOX® Week #707
IPOX® 100 U.S. (ETF: FPX) holds on to outsized gains from the week prior.
Global IPOX® Indexes outperform benchmarks. IPOX® Japan leads.
GINDEX® U.S. gains as IPO M&A Bluegreen Vacation doubles on takeover.
IPOX® SPAC (SPAC) drops 2.85%. 2 SPACs launched in the U.S. last week.
IPOX® PERFORMANCE REVIEW: The IPOX® Indexes traded mixed last week, with our global portfolios maintaining relative strength over benchmarks. In the U.S., The University of Michigan’s consumer confidence index fell to a six-month low as expectations for long-term inflation hit the highest mark since 2011. Ongoing consumer spending concerns and higher inflation prospects present a tough spot for the Federal Reserve, sending short-term bonds lower. On the back of huge outperformance in the week before, the IPOX® 100 U.S. (ETF: FPX) managed to retain previous gains, slipping just -0.02% to +4.64% YTD. Globally, the IPOX® International (ETF: FPXI) gained +0.90%, taking 83 bps. from the MSCI World ex-USA (MXWOU) benchmark, as select Korean large caps climbed after Seoul banned short-selling. The IPOX® Europe (ETF: FPXE) fell -0.73% amid a strengthening Euro, edging 2 bps. ahead of the STOXX 50 Europe benchmark, yet again. The IPOX® Japan (IPJP: +3.32%) was our biggest winner last week, taking 101 bps. from the TSE Growth Market 250 Index (TSEMOTHR), reaching its highest level since the beginning of this quarter.
IPOX® PORTFOLIO STOCKS IN FOCUS: As earnings season is ending, select returns of our holdings showed high dispersions once again. The IPOX® 100 U.S. (ETF: FPX) was led by language learning app Duolingo (DUOL US: +35.64%), which rallied to a new post-IPO high after a profit surprise and plans to venture into math and music tuition. Fintech firm Shift4 Payments (FOUR US: +17.91%) climbed on earnings, while global university tuition payment processor Flywire (FLYW US: -30.45%) fell on disappointing results. IPOX® International (ETF: FPXI) large cap holding, Japanese multinational electronics corporation TDK (6762 JP: +7.88%) rose to a new all-time-high, leading the index, while Stevanato (STVN US: +7.27%) came in second. The Italian pharma glass maker led the IPOX® Europe (ETF: FPXE), followed by Polish logistics firm InPost (INPST NA: +5.93%), gaining on rising demand. Plastic surgery firm Establishment Labs (ESTA US: -38.60%) received analyst downgrades. Member-only luxury club platform Soho House (SHCO US: -19.52%) fell as wet summer weather reportedly hurt Q3 revenues. Our GINDEX® U.S. (GNDX) was led higher as IPO M&A Bluegreen Vacations (BVH US: +107.18%) doubled on acquisition by Hilton.
IPO MARKET REVIEW AND OUTLOOK: 7 sizable firms started trading last week, gaining +10.25% on average between opening price and Friday’s close. The largest listing was by Chinese chipmaking firm Will Semiconductor (WILL SW: +0.35%, $442m offer), which gained marginally amid the characteristically low volume of Swiss GDR listings. In the U.S., cancer biotech Cargo Therapeutics (CRGX US: -3.13%, $281m) fell after pricing at bottom, amid a sluggish trend in recent biotech listings. Norwegian consultancy Norconsult (NORCO NO: -0.26%, $196m) started trading in Oslo.
7 firms with an offer size above $25m are expected to list this week, the most notable IPOs being: 1) Korean EV battery materials maker EcoPro Materials (450080 KS, $314m offer size), the second-largest offer in South Korea this year. 2) Abu Dhabi alternative investment firm Investcorp Capital (ICAP UH, $450m) 3) Contract pharma research spinoff WuXi XDC Cayman (2268 HK, $470m).
For more information about upcoming and recent listings visit the IPOX® IPO Calendar.
THE IPOX® SPAC (SPAC): The Index of 50 constituents trading at both the pre- and post-consummation stage fell -2.85% to +5.61% YTD last week. IPOX® SPAC Leaders recording the most upside moves last week was pet sitting and dog walking platform Rover Group (ROVR US: +24.27%) as the company topped Q3 expectations and raised guidance. Swiss biotech MoonLake Immunotherapeutics (MLTX US: -26.58%) plunged as clinical trial disappointed. Other SPAC news from last week: 1) no SPAC Announced Merger Agreement. 2) 1 SPAC Approved Business Combinations with Quantum FinTech Acquisition (QFTA US: -25.70%) approved merger with financial services company AtlasClear (ATCH US), which is itself combining with correspondent full-services securities broker-dealer Wilson Davis & Co and bank holding company Commercial Bancorp of Wyoming. 3) 3 SPACs announced merger terminations. 4). No SPAC announced liquidation. 5) 2 new SPACs launched last week in the U.S.
