The IPOX® Week #732
IPOX® Indexes gain: IPOX® Nordic, IPOX® MENA drive IPOX® International.
IPOX® High Yield Bonds surge as U.S economy set to cool.
Big gains for U.S. biotech and recent IPOs issued across Europe.
IPO rebound sees large listings, e.g. Puig, Viking, with more to come.
IPOX® REVIEW: Most IPOX® Indexes extended last week’s big gains to finish FED week with strong gains. Amid the surge in the IPOX® Aggregate Bond Index (IPOXTD: +1.22%) with focus on the jump in IPOX® High Yield (IPXUHYG), a slew of earnings releases, a weak U.S. Dollar and a plunge in equity risk (VIX: -10.25%), gains extended across most IPOX® Regions and Sectors. In the U.S., e.g. the IPOX® 100 U.S. (ETF: FPX) - benchmark for U.S. IPO and Spin-off performance - added +0.56% to +6.25% YTD, edging out the S&P 500 (SPX), benchmarks for U.S. stocks. Amid significant ECM activity, strong gains extended to Markets abroad. For example, while European benchmarks declined during the shortened trading week, the IPOX® 100 Europe (ETF: FPXE) added +0.81% to +9.07% YTD. Here, weakness in IPO M&A Danish Wegovy weight loss drug maker Novo Nordisk (NVO US: -4.06%) failed to stop the powerful momentum in the IPOX® Nordic (IPND) with the 30-stock portfolio closing out the trading week at a fresh multi-year High.
After recent weakness, positive Momentum also picked up for IPOX® Holdings domiciled in the MENA region, with the IPOX® MENA (IPEV) adding +2.23% to +7.82% YTD, +1061 bps. ahead of its benchmarks. These, in addition of a strong IPOX® China (CNI) and solid IPOX® Japan (IPJP), propelled the IPOX® International (ETF: FPXI) adding +1.61% to +8.66% YTD, last week.
IPOX® PORTFOLIO HOLDINGS IN FOCUS: In the U.S., 61% of portfolio holdings in the IPOX® 100 U.S. (ETF: FPX) rose, with the average (median) equally-weighted stock adding +0.95% (+0.90%), slightly outpacing the applied market-cap weighted index. Of the 33 IPOX® Holdings which reported last week, 25 (75.76%) beat EPS expectations. However, since some of the larger names missed, the weighted earnings beat declined to 57.15%. Healthcare ranked on top with focus on Procept (PRCT US: +24.08%), Apogee (APGE US: +14.98%), Kymera (KYMR US: +12.08%) and IPO M&A Regeneron (REGN US: +8.36%), while IPOX® heavyweight premier climate play Constellation Energy (CEG US: +3.45%) finished the trading week at a fresh post-Spin off High. Weak earnings pressured software maker Cloudflare (NET US: -15.46%), food delivery app Doordash (DASH US: -13.85%) and medical equipment maker GE Healthcare (GEHC US: -7.85%). Another 34 companies, representing 36.15% of the IPOX® 100 U.S. (ETF: FPX) are set to report this week, making it the most active week in the earnings reporting season.
In Europe, strong gains in some of the most recently IPO’d companies underlined the positive momentum for European IPOs and drove some of the portfolios benchmark-adjusted outperformance, including French employee benefits solution provider Sodexo Spin-off Paris-traded Pluxee International (PLX FP: +8.89%), Norway-domiciled engineering and design consultancy services provider Norconsult (NORCO NO: +5.38%), Swiss beauty products maker Galderma (GALD SE: +3.95%), Norway’s oilfield services provider DOF Group (DOFG NO: +2.82%) and Swedish retailer Rusta (RUSTA SS: +2.56%).
Amid industry consolidation talks, a licensing deal with omnipresent TikTok and more upgrades, French-traded Universal Music Group (UMG NA: +4.86%) also notched the highest weekly close on record. Across Asia, we note another big week for previously highlighted Indonesian-domiciled exposure held in the IPOX® International (ETF: FPXI), foremost global alternative energy play $82 billion Barito Renewables Energy (BREN IJ: +14.49%) and miner Amman Mineral (AMMN IJ: +3.17%). Weak earnings/forecasts pressured traditional auto makers absolute and relative (vs. EVs), including Germany’s Daimler Truck (DTG GY: -4.55%) and high-end car maker Porsche (P911 GY: -6.77%).
IPOX® SPAC Index (SPAC): The Index fell -0.98% last week to -0.80% YTD amid earning season volatility. Chicago-based online casino platform Rush Street Interactive (RSI US) +25.36% soared on earning beat and uplifted guidance. Conx Corp (CONX US) -16.76% fell the most in the index as the SPAC closed acquisition of the corporate headquarters of DISH Wireless from EchoStar Real Estate. The commercial real estate property acquisition would still meet the requirement of a business combination for SPAC. 3 SPACs approved/completed merger include LAMF Global Ventures I with pregnancy monitoring and management platform Nuvo Group (NUVO US) -72.24% which lost 2/3 of its value in 2 trading days. Serial SPAC sponsor Michael Klein returned to the market with flagship SPAC Churchill Capital Corp IX and raised $250 million, the smallest in all SPACs sponsored by Klein but the largest YTD.
IPO REVIEW AND OUTLOOK: 10 sizable IPOs started trading international last week, gaining +10.60% (avg.) / +1.73% (median) from offer price to Friday’s close. The largest listing of the week was Spanish perfume and beauty giant Puig (PUIG SM: +0.00%, $2.8b offer), owner of brands such as Paco Rabanne and Jean Paul Gaultier. In the U.S., Bermuda/Switzerland based luxury cruise operator Viking (VIK US: +20.83%, $1.8b) gained as the appetite for new listings continues. Next week will see several large international listings on Thursday, including U.S. IPOs of auto logistics firm Proficient Auto Logistics (PAL US, $229m) and chip designer Silvaco (SVCO US, $114m) as well as the Dubai listing of supermarket chain Spinneys (SPINNEYS UH, $373m) and Seoul IPO of Korean ship engineering firm HD Hyundai Marine Solutions (443060 KS, $553m). Follow our IPO Calendar and social media (e.g. Linkedin) for Updates.
