The IPOX® Week #726
Post earnings Momentum drive most IPOX® Indexes to big week.
IPOX® 100 U.S. Index soars +3.68% as U.S. stock market rally broadens.
IPOX® MENA consolidates. Select corporate-action linked exposure volatile.
Astera Labs, Galderma big weekly IPO winners. More IPOs lined up.
IPOX® PERFORMANCE REVIEW: Most IPOX® Indexes soared post-expiration and outperformed during FED week amid a decline in risk (VIX: -9.37%) and dovish FED talk, benefiting overproportionally from the powerful mix of post-earnings Momentum and a favorable interest rate and macro outlook. Supported by a jump in the IPOX® Aggregate Bond Index (IPOXTD: +0.80%)/lower corporate bond yields, most upside was recorded by developed markets exposure, including the IPOX® Global (IPGL50: +3.28%), IPOX® Japan (IPJP: +5.63%) and IPOX® U.S. (IPXO: +3.68%, IPXT: +4.11%, SPAC: +3.92%) which all beat their respective benchmarks. Amid busy deal flow, we also note more gains in the IPOX® 100 Europe (IPOE: +1.12%). On the back of a surge in European-domiciled firms trading/listed exclusively in the United States and untracked firms in the classic European benchmarks, including 05/21 IPO pharma maker U.K. biotech Centessa Pharmaceuticals (CNTA US: +13.49%), Finland-domiciled 02/24 IPO high-end anorak maker Amer Sports (AS US: +7.53%) and U.K. semiconductor stock 09/23 IPO ARM Holdings (ARM US: +5.65%), the IPOX® 100 Europe (IPOE) added +1.12% to +13.10% YTD, +800 bps. (+666 bps. Y/Y) ahead of the European market YTD. Amongst specialty exposure, the bespoke IPOX® ESG (IPXT: +4.11%) joined the big post-expiration rally, with the broad-based all-cap Momentum portfolio of 100 fully ESG vetted portfolio holdings extending the YTD gain to a massive +18.29%. After the big run-up during the previous week, the IPOX® MENA (IPEV) portfolio focusing on Middle Eastern deal flow recorded a decline of -1.70% to +12.16% YTD, lagging the benchmarks, while the IPOX® Growth Infusion Indexes (GNDX: +2.26%, GNDXI: +1.40%) also rose notably and outperformed.
IPOX® PORTFOLIO HOLDINGS IN FOCUS: We were impressed by the breadth and magnitude of the upwards move, mostly across developed markets exposure post expiration. In the IPOX® 100 U.S., e.g., 82% of holdings rose, with the average (median) equally-weighted stock adding +3.15% (+3.12%) last week, slightly lagging the applied market-cap weighted index (+3.68%). Here, post-earnings Momentum drove a widely diversified set of stocks including 07/21 IPO industrial products maker Core and Main (CNM US: +14.26%), 04/21 IPO AI solutions provider AppLovin (APP US: +12.83%) and 01/22 Spin-off alternative energy solutions provider Constellation Energy (CEG US: +7.68%) to fresh post-IPO weekly closing highs. Other standouts included some of the previous years’ key deals in the Financial Industry, such as 04/23 IPO Japanese Financial Rakuten Bank (5838 JP: +9.46%) and Miami-based, Australian-traded, Pacific Current-backed fund manager GQG Partners (GQG AT: +7.21%), as well as in now U.S.-cross listed Almaty-based fintech Kaspi.kz (KSPI US: +8.20), all recently added to our IPOX® International (IPXI). In the IPOX® Japan (IPJP) we note more gains in small-cap solar plant developer Kasumigaseki (3498 JP: +30.11%). Rumors of a secondary listing cooled M&A plans of Tumi-luggage owner Samsonite (1910 HK: -6.40%), while shipping company Euronav (EURN BB: -3.21%) traded extremely volatile after the announcement of the results of mandatory public takeover bid.
LIVE LAUNCH OF THE IPOX® BOND INDEXES: The IPOX® Bond Indexes are now live, offering access to U.S. dollar-denominated corporate debt from the IPOX® Universe. Designed for both passive and active financial products, these indexes aim to capture the unique returns and potential outperformance of new listings. For more information, contact info@ipox.com. 
IPO ACTIVITY AND OUTLOOK: At least 8 significant firms commenced trading last week, raising ca. $5.7 billion in total, with the average (median) equally weighted firm adding a strong +22.84% (+26.33%) based on the difference between the final offering price and Friday's close. In the U.S., top of the list ranked Intel-backed connectivity chip maker Astera Labs (ALAB US: +94.44%, $713 million raise) with the firm benefiting from AI enthusiasm after pricing above range. Other notable deals included social media operator Reddit (RDDT US: +35.29%, $748 million) whose positive initial sentiment cooled towards Friday's close, while LATAM-focused healthcare services provider and hospital operator Auna (AUNA US: -20.00%, $360 million) fell sharply on Friday. We observed big swings in sentiment for the European deals: While the initial decline in German debt-laden private equity-backed perfume retailer Douglas (DOU GR: -15.23%, $961 million) soured sentiment for IPOs in Germany, Swiss-traded dermacare specialist Galderma (GALD SW: +20.75%, $2.2 billion), a former Nestle/L'Oreal joint venture, rose sharply in what was the largest European IPO since Porsche (P911 GR). In Asia & MENA, Japanese discount store operator Trial Holdings (141A JP: +35.29%, $257 million) advanced in Tokyo's biggest IPO this year, while Dubai-based parking business Parkin (PARKIN UH: +31.90%, $429 million) climbed on continued Momentum for IPOs in the region.
IPO NEWS: 1) New York tech consulting firm Synechron files confidentially, aiming to raise $400m. 2) Chicago-based Encyclopaedia Britannica seeks $1 billion, shifting from print to AI-enhanced digital education. 3) Italian gas distributor 2i Rete Gas to raise $650 million in Milan. 4) Abhu Dhabi’s IHC and Mideast hypermarket LuLu plan MENA Listings. 5) Oman aims for IPO of logistics giant Asyad Group. 6) J&J-backed biotech Contineum files for IPO to advance neurology/inflammation pipeline.
Follow our IPO Calendar and social media channels (e.g. Linkedin) for Updates.
