The IPOX® Week #734
Expiration, good U.S. CPI propelled the IPOX® Equity Indexes last week.
Bonds tied to IPOX® Holdings continue outperformance.
Another IPO M&A as private equity pounces on Squarespace.
One significant deal priced as China-IPOs recover. More deals lined up.
SUMMARY: Bullish expiration positioning in DM equities amid a good U.S. CPI, declining equity risk (VIX US: -4.46%) and positive post-Earnings Momentum propelled most IPOX® Equity Indexes last week to extend their YTD gains.
In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX), equity benchmark for performance of the most innovative U.S. companies as measured by U.S. IPO and Spin-offs providing access to the unique IPO factor footprint, added +1.31% to +8.48% YTD, -23 bps. shy of the performance of S&P 500 (SPY), benchmark for U.S. stocks. Amid a good U.S. CPI and earnings, the IPOX® Corporate Bonds Index (IPOXTD) rallied for a second week with the broad-based portfolio of the most liquid high-yield and investment grade U.S.-traded debt tied IPOX® Holdings continuing to outperform the Bloomberg U.S. Aggregate Bond Index (SPAB US), e.g.
DEBT TIED TO IPOX® HOLDINGS (IPOXTD) OUTPERFORMS ANEW
Last week, some markets pooling non-U.S. domiciled exposure outpaced U.S. equities anew: Top of the list ranked the IPOX® 100 Europe (ETF: FPXE) which added +2.09% to +13.82% YTD, closing the week at a fresh weekly YTD high and extending the YTD lead vs. the European market to +506 bps. This was also driven by more gains in the IPOX® Nordic (IPDN), with the 30-stock portfolio of respective Nordic-based companies adding +0.92% to +16.30% YTD, significantly ahead of the Nordic benchmarks.
IPOX® NORDIC (IXNDT) SINCE LIVE LAUNCH
With the exception of a weak IPOX® MENA (IPEV), strength across the IPOX® Regional Indexes Universe also benefited the IPOX® International (ETF: FPXI). The portfolio of 50 innovative non-U.S. domiciled IPOs, Spin-offs and respective M&A added +1.79% to +11.81% YTD, extending its YTD lead vs. the benchmark MSCI World Index (excluding U.S) (MXWOU) to a large +559 bps.
Amid earnings and more corporate actions, 68/100 IPOX® 100 U.S. (ETF: FPX) portfolio holdings rose last week, with the average (median) equally weighted stock adding +2.00% (+1.39%) with companies with meme-stock potentials including online trader Robinhood (HOOD: +23.78%) and social networker Reddit (RDDT US: +15.90%) leading the way, while website builder Squarespace (SQSP: +14.72%) received a Permira-led take-private offer.
Across the list of non-U.S. domiciled stocks, the story of the week belonged to Tel Aviv-based application software maker Monday.com (MNDY US: +25.90%) and Swiss-based innovative sneaker maker On Holdings (ON US: +25.39%) which both surged following strong earnings and upgrades. Across emerging markets exposure, we also note the fresh all-time high in Indonesian-based stocks captured in the IPOX® International (ETF: FPXI), including alternative energy powerhouse Barito Renewables (BREN IJ: +11.40%) and copper and gold miner PT Amman Mineral International (AMMN IJ: +7.89%), previously featured here. Medical glass capsules maker Stevanato (STVN US: -5.09%) and Schott Pharma (1SXP GR: -14.02%) recorded notable declines on weak earnings.
IPOX® SPAC Index (SPAC): The Index added +1.80% last week to +0.56% YTD as markets rallied. Upside focus was on Telehealth platform Hims & Hers (HIMS US: +18.55%) which continued to soar post-earnings as the company exceeded expectations on subscription growth and margin expansion. LGBTQ+ dating platform Grindr (GRND US: -6.51%) tumbled as EPS missed and insiders sold. 3 SPACs announced merger targets include Global Technology Acquisition I (GTAC US) +0.36% with Chinese offline to online (O2O) art marketplace Tyfon.Culture, the Chinese contemporary painting trading intermediary has failed three times to list in Hong Kong in the past. Hudson Acquisition I (HUDA US) +1.53% announced to merge with European market sale-focused Chinese EV maker Aiways. Screaming Eagle (SRCM US) closed deal with Lions Gate Entertainment’s TV & movie unit spin-off Lionsgate Studio (LION US) -3.37%. 2024 deSPAC vertical farming company Nature’s Miracle (NMHI US) -20.18% announced to acquire 2021 struggling IPO cannabis cultivation company Agrify (AGFY US) +17.72%. One new SPAC IPO this week.
ECM REVIEW AND OUTLOOK: H.K.-traded marketing software as a service provider Marketingforce Management Ltd (2556 HK: +18.81%) underlined the recovery for China-linked deals with restaurant operator Haidilao-Spin-off Singapore-based Super Hi International’s (9658 HK) New York listing also welcomed by U.S. investors (HDL US: +13.96%). Saudi Hospital operator Dr. Soliman Abdel Kader Fakeeh and U.S.-based insurance provider Bowhead Specialty Holdings (BOW US) are two notable deal lined up for this week.
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