The IPOX® Week #709
2-year low in risk propels IPOX® 100 U.S. to top of weekly Indexes ranking.
IPOX® International jumps as Europe, China gain. GINDEX® Indexes climb.
IPOX® Holding ARM (ARM US) soars, defying IPO sceptics.
IPOX® SPAC (SPAC) adds 2.87% to 12.70% YTD. 1 SPAC launched.
IPOX® PERFORMANCE REVIEW: The plunge in global equity risk (VIX: -9.71%) to a multi-year low, stable U.S. yields across the board and strong earnings left the IPOX® Indexes on top of the global equity Indexes ranking during the shortened U.S. trading week. In the U.S., e.g., the diversified and small-cap heavy IPOX® 100 U.S. (ETF: FPX) extended gains to a 2nd consecutive week, adding +1.51% to +11.21% YTD, far outpacing the Russell 2000 (RTY) and S&P 500 (SPX), benchmarks for U.S. small- and large-caps, respectively. In non-U.S. domiciled exposure, a strong +2.01% gain in the IPOX® 100 Europe (ETF: FPXE) and +1.64% rise in the IPOX® China (CNI) contributed to another solid showing for the IPOX® International (ETF: FPXI), adding +1.61% to +4.61% YTD. Gains also extended to other regional markets, including the IPOX® Nordic (IPND) which is sitting at a key technical break-out point, IPOX® Japan (IPJP) and IPOX® MENA (IPEV). Finally, the performance of the lower-beta, super-liquid and large-cap tilted portfolio of acquirers of IPOX® members representing innovative modernization trades of incumbents and pooled in the GINDEX® Growth Infusion U.S. (IPXUGNDT) remained solid for another week, with the respective FANG-free portfolio remaining ahead of benchmark S&P 500 (SPXT) by a strong +619 bps. since its August 13, 2021 launch.
IPOX® PORTFOLIO STOCKS IN FOCUS: Amongst individual IPOX® Portfolio Holdings, the story of the week belonged to U.K. chip maker ARM Holdings (ARM US: +16.17%). Amid positive analyst notes on potential revenue growth driven by new licensing deals, post-IPO short covering and speculation about a potential secondary listing in London, the IPOX® 100 Europe (ETF: FPXE) member defied media and industry sceptics to close out the week at the highest level since its 9/14/2023 New York Listing. Other European exposure pooled in the portfolio closing out the shortened U.S. trading week at or near a post-IPO high included Sweden-domiciled IPOX® Stocks such as specialty pharma maker Bonesupport (BONEX SS: +6.11%), biotech IPO M&A play Morgan Stanley overweight Swedish Orphan Biovitrum (SOBI SS: +4.28%), industrial equipment manufacturer Alleima (ALLEI SS: +3.50%) and online property platform operator Hemnet Group (HEM SS: +1.82%) In the U.S., we note the big week for warehouse automation solutions provider, Walmart-backed de-SPAC Symbotic (SYM US: +38.25%), a key holding of the IPOX® 100 U.S. (ETF: FPX), benchmark for U.S. IPO performance. Amid massive short-covering, the $28.6 billion company benefited from better-than-expected quarterly revenue and faster-than-anticipated system deployment. Other stocks with big upsides, closing out the week at a fresh post-listings High, included St. Louis-based nutrition products maker BellRing Brands (BRBR US: +10.12%), application software maker Salesforce-competitor Braze (BRZE US: +6.59%), language learning platform Duolingo (DUOL US: +4.64%), as well as life insurance provider Fidelity National Financial Spin-off F&G Annuities & Life (FG US: +4.87%) and interest rate-sensitive wood kitchen cabinet maker Masterbrands (MBC US: +4.12%), a 2022 Spin-off from Fortune Brands. Across Asia-Pacific, we note more momentum buying in select IPOX® Japan (IPJP) and IPOX® China (CNI) Holdings, propelling the portfolios to a strong week, including small-cap IT services provider Forum Engineering (7088 JP: +7.33%), Tokyo-traded Essential-Industries play IPO M&A electric components maker TDK (6762 JP: +2.40%), U.S.-traded innovative appliances maker Sharkninja (SN US: +3.89%) and H.K.-traded oil pipe maker Dalipal (1921 HK: +10.04%). German communication software maker Teamviewer (TMV GY: -10.01%), U.S. Biotech Legend (LEGN US: -6.30%) and China-domiciled rail freight services provider Conggang Railway (2169 HK: -30.61%) fell most amongst our regional exposure.
IPO MARKET REVIEW AND OUTLOOK: 6 sizable firms started trading across the global equity universe tracked by IPOX® last week with the average (median) equally-weighted deal adding +26.17% (+7.93%) based on the difference between the respective final offering price and Friday’s close. Amid big gains for smaller Korean stock exposure after the government’s short selling ban, much focus was on the initial showing of small-caps household appliances maker Stormtec (352090 KS: +52.09%), backpack manufacturer Dong In Entech (111380 KS: -8.50%) and engineering services provider Ecoeye (44280 KS: +86.17%). H.K.’s only IPO last week, engineering services provider Shanxi Installation Group (2520 HK: -7.34%), failed to benefit from the previous week’s strong showing of Chinese key biotech play Wuxi XDC (2268 HK: +3.57%). No significant deal flow is lined up for this week.
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 extended it weekly winning streak, adding +2.87% to +12.70% YTD last week. IPOX® SPAC leaders included aforementioned warehouse automation solutions provider Symbotic (SYM US: +38.25%) as the Walmart-backed company soared after reporting exceptional revenue growth, while specialty insurer International General Insurance (IGIC US: -3.42%) traded as the portfolio weakest holding last week. Other SPAC news from last week: 1) 2 SPACs Announced Merger Agreement include Global Partner Acquisition II (GPAC US: +0.18%) with lithium manufacturer Stardust Power. 2) 1 SPAC Approved/Completed Business Combinations included Mountain Crest Acquisition IV (MCAF US: +10.49%) approved and completed merger with Chinese EV manufacturer and designer CH-Auto. 3) No SPAC announced liquidation. 4) 1 new SPAC launched last week in the U.S.
