The IPOX® Week #713
IPOX® 100 U.S. (ETF: FPX) gains for 6th consecutive week to +22.49% YTD.
IPOX® Europe (ETF: FPXE) climbs on distinct holdings and Nordic momentum.
IPOX® Health Innovation and GINDEX® U.S. rise on IPO M&A deal flow.
IPOX® SPAC (SPAC) adds +0.80% to 23.21% YTD. No new SPACs launched.
IPOX® PERFORMANCE REVIEW: As markets are turning quiet in the run-up to Christmas, most of the IPOX® Indexes gained on continuing momentum in post-rebalancing week. In the U.S., investor confidence was bolstered by data suggesting a possible “soft landing” for the economy. As rates stayed stable, the IPOX® 100 U.S. (ETF: FPX) added +0.54% to +22.49% YTD, gaining for a 6th consecutive week. Internationally, we saw a relatively strong performance in the USD-denominated IPOX® Europe (ETF: FPXE), which climbed +1.21% to +12.40% YTD amid continuing Euro strength, now 143 bps. ahead of the STOXX 50 (SX5L) benchmark this month, on outperformance in select exclusive holdings, e.g. blockbuster chipmaker IPO Arm (ARM US) and Scandinavia-focused exposure, as seen in the IPOX® Nordic (IPND: +2.36%). The IPOX® International (ETF: FPXI) fell slightly to +7.50% YTD, affected by a slump in China large cap tech, after the country announced surprise restrictions in the Online Gaming sector. As a result, the IPOX® China (CNI) fell -4.25%. The IPOX® Health Innovation (IPHI: +2.47%) led the IPOX® Indexes for the third week, as continuing IPO M&A action and the prospect of rate cuts strengthens biotech.
GINDEX® PERFORMANCE REVIEW: Tracking acquirers of recently public firms, our GINDEX® U.S. Growth Infusion Index (GNDX) reached another all-time high last week, gaining +1.55% to +20.68% YTD. The innovative portfolio focuses on acquirers of recently-gone-public firms and extended its lead against S&P 500 by 977 bps. since its 08/2021 launch. The ex-USA version GINDEX® International (GNDXI) added +1.44% last week, reaching +9.51% since its March 2023 launch.
IPOX® PORTFOLIO STOCKS IN FOCUS: Last week’s top gainers stood out for being made up of several new index members. In the IPOX® 100 U.S. (ETF: FPX), Health Care firms were found at both ends: Newly added neurology firm Karuna Therapeutics (KRTX US: +44.63%) surged on a buyout proposal by pharma giant Bristol Myers Squibb, while Ozempic challenger Structure Therapeutics (GPCR US: -39.84%) fell on disappointing trial results. As crypto faced a resurgence in 2023, returning index member Coinbase (COIN US: +18.65%) rose anew amid analyst upgrades. Bitcoin miner Bitdeer Technologies (BTDR US: +29.37%), led the IPOX® Europe (ETF: FPXE) together with Nordic discount retailer Rusta (RUSTA SS: +24.83%), which climbed to a new post-IPO high on positive earnings just after joining the IPOX® Nordic. Dutch Tencent investor Prosus (PRX NA: -15.72%) fell with the Chinese IPOX® International (ETF: FPXI) holding Netease (NTES US: -14.83%) as China cracks down on online gaming. On the contrary, compatriot pharma contract research firm WuXi XDC Cayman (2268 HK: +10.23%) jumped after joining our indexes, buoyed by Morgan Stanley’s positive outlook.
IPO MARKET REVIEW AND OUTLOOK: 15 sizable firms started trading across the global equity universe tracked by IPOX® last week, with focus on the Asia-Pacific region. The average (median) equally-weighted deal added +28.61% (+1.31%) based on the difference between the respective final offering price and Friday’s close. The largest listing was Abu Dhabi clinic operator PureHealth (PUREHEAL UH: +81.29%), which demonstrated continued healthy appetite for MENA IPOs after raising $986 million. Other notable listings included Chinese EV battery firm Rept Battero (666 HK: +0.22%, $272m offer), unit of the world’s largest nickel producer Tsingshan. Korean waste disposal firm DS Dansuk (017860 KS: +300.00%, $84m) hit trading limits after tripling to a $1.8 billion market capitalization.
The last week of 2023 will likely see 4 international IPOs, the largest being Indian real estate developer Suraj Estate Developers (SURAJEST IN, $192m). Follow our IPO Calendar for more information.
IPOX® SPAC Index (SPAC): The Index of 50 constituents trading at both the pre- and post-consummation stage added +0.80% to +23.21% YTD. Largest gains were recorded by mobile banking and personal finance platform MoneyLion (ML US: +17.85%) as analysts doubled the price target. Quantum computer firm IonQ (IONQ US: -8.64%) fell. Other SPAC news: 1) 4 SPACs Announced Merger Agreement last week including Screaming Eagle Acquisition (SCRM US: +0.38%) with Lionsgate studio, which comprising the TV production and Motion Picture group divisions with assets such as John Wick franchise and Twilight Saga. 2) At least 8 SPACs Approved/Completed Business Combinations, including BYTE Acquisition’s completed merger with U.S. government border surveillance solution provider Airship AI (AISP US: -46.94%). 3) At least 4 SPACs announced to liquidate. 4) No new SPAC launched last week. 1 SPAC set for this week.
