The IPOX® Week #717
AI Momentum mitigates higher yields as IPOX® Indexes trade mixed.
All IPOX® Indexes tracking non-U.S. domiciled exposure outperform.
Most upside focus on IPOX® Canada, IPOX® Japan and IPOX® MENA.
Read about the IPOs set to commence trading this week below.
IPOX® PERFORMANCE REVIEW: Most IPOX® Indexes followed the record-breaking Nasdaq 100 (NDX) and S&P 500 (SPX) higher during monthly options expiration week, amid the big tug of war between AI momentum propelling U.S. Big Tech, solid earnings, the rise in yields pressuring most U.S. small- and mid-caps, higher risk (VIX: +4.72) and another desolate week for most Chinese equities. Ahead of earnings, in the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX) added +0.75% to -2.18% YTD, leading U.S. small- and mid-caps, while lagging the derivatives-heavy Nasdaq 100 (NDX) and S&P 500 (SPX). We also note the relative strength across all of the IPOX® Markets pooling non-U.S. domiciled exposure listed across the U.S, EMEA and Asia-Pacific last week.
Respective IPOX® Indexes with implied (factor/industry) tilts continued to sparkle with the IPOX® U.S. ESG (IPXT) leading the way. The broad-based and highly scalable portfolio of ESG compliant U.S. New Listings added +1.75% to +1.05% YTD last week, e.g. Acquirers of IPOs pooled in the GINDEX® Growth Infusion Indexes (GNDX, GNDXI) performed in line (GNDX) to better (GNDXI) than when compared to benchmarks.
IPOX® STOCKS IN FOCUS: In the U.S., just 47/100 portfolio holdings in the IPOX® 100 U.S. (ETF: FPX) rose, with the average (median) equally-weighted stock declining by -0.48% (-0.26%), significantly lower than when compared to the applied market-cap weighted index and underlying the impact of weakness across U.S. small- and mid-caps. Top of the leaderboard ranked de-SPAC U.S. gaming platform operator Draftkings (DKNG US: +14.17%) amid positive analyst comments on declining risk from competition, while communication make small-cap Credo Technology (CRDO US: +9.95%) and electrical power equipment maker de-SPAC Vertiv (VRT US: +8.38%) zoomed to fresh post-IPO highs. U.S. electric car maker Rivian (RIVN US: -14.29%) ranked worst, while declines amongst U.S. biotechs pressured respective stocks. In non-U.S. domiciled exposure, we note significant gains in U.S.-traded, Europe domiciled firms. Foremost, this included U.K. chipmaker IPOX® heavyweight 09/23 IPO ARM Holdings (ARM US: +12.26%) which set a fresh post-IPO high. Amid secondary offering activity, we also note the fresh all-time high in Italy’s P/E-backed 09/23 IPO Lottomatica Group (LTMC IM: +12.26%), as well as German-based web hosting and cloud services solutions provider 02/23 IPO Ionos SE (IOS GY: +8.07%), while Saudi-based electrical components maker 12/22 IPO Riyadh Cables (RIYADHCA AB: +9.93%) marched to yet another weekly post-IPO high. Amid a sizeable corporate action, Indonesian miner 03/23 IPO Petrindo Jaya Kreasi (CUAN IJ: -34.08%) plunged, while Chinese EV producers 08/20 IPO Xpeng (XPEV US: -18.10%) and 07/20 IPO Li Auto (LI US: -10.77%) followed the big weakness amongst most firms in the global alternative/sustainable energy sector.
IPO MARKET REVIEW: No significant accessible (primary market) IPOs and/or Spin-offs commenced trading last week.
NOTABLE GLOBAL IPO DEAL FLOW WEEK 01/22/24: Amid brisk filing activity in the U.S. and abroad, three notable accessible IPOs are scheduled to debut this week. The largest deal of the week (and YTD) belongs to U.S.-based health services provider Kentucky-based BrightSpring Health Services. Expected to start trading Thursday, the KKR-backed firm seeks to raise ca. USD million 960 for ca. 32.1% of the firm with the respective portion of the proceeds staying in the firm earmarked to repay all of the indebtedness outstanding under a second lien facility. Abroad, we watch biotech Alar Pharma and Taiwan’s World Fitness Services which are set to debut in Taiwan during the week.
IPOX® SPAC Index (SPAC): The Index of 50 constituents trading at both the pre- and post-consummation declined by -0.02% to -3.51% YTD, following the mixed sentiment in U.S. small-caps amid more U.S. rates jitters. IPOX® SPAC Leaders last week included aforementioned Draftkings (DKNG US: +14.17%) and Vertiv (VRT US: +8.38%) with factory automation focused Symbotic (SYM US: +4.47%) ranked as 3rd best performing portfolio holding on the week. NY-based fintech MoneyLion (ML US: -15.76%), Zug/Switzerland-based biotech MoonLake Immunotherapeutics (MLTX US: -8.18%), renewable energy firm India-based ReNew Energy Global (RNW US: -7.71%) and aviation-focused AerSale (ASLE US: -6.84%) ranked at the bottom. Within the broader list of de-SPACs outside the IPOX® SPAC (SPAC), we note another tough week for pre-IPO marketplace Forge (FRGE US) with the stock extending its YTD decline to a massive -46.06%.
Follow our IPO Calendar and social media channels (e.g. Linkedin) for the latest ECM IPO News.
