The IPOX® Week #738
IPOX® 100 U.S. edges higher despite weak macro, outperforms small-cap.
IPOX® Europe and IPOX® International show strength amid political turmoil.
IPOX® ESG Index (IPXT) surges anew, key holding Arm joins Nasdaq 100.
Global IPO market remains active, luxury sneaker firm Golden Goose in focus.
SUMMARY: Amid a volatile week for global equities (VIX: +3.60%), most of the IPOX® Indexes edged higher ahead of the quarter-end fund rebalancing period. In the U.S., the small-cap beating IPOX® 100 U.S. (ETF: FPX) lagged the large benchmarks, weighed down by Industrials sector exposure as weak economic data, including an unexpected drop in consumer sentiment to a seven-month low, sent U.S. Treasury yields lower across the board, with the 10-year yield declining to 4.22%. The IPOX® Corporate Bond Indexes also saw a significant jump.
Abundant caution gripped European markets on concerns over a political crisis in France, as French president Macron called a snap parliamentary vote following a heavy defeat in EU elections, resulting in a widening of the France-Germany yield spread by the most on record. This drove European benchmarks significantly lower, spurring a flight to haven assets, including bonds, gold and the U.S. dollar, which strengthened to its highest level since November.
With the Euro ranking among the worst-performing major currencies last week, the IPOX® Europe (ETF: FPXE) showed relative resilience on our unique strategy that includes the best new U.S.-listed European companies. Driven by heavyweight Arm Holdings (ARM US: +15.61%) following its inclusion in the Nasdaq 100 Index, our European benchmark took 230 bps. from the hard-to-beat STOXX Europe 50. The IPOX® Nordic (IPND) also saw significant strength anew, e.g., with Swedish retailer Rusta AB (RUSTA SS: +14.26%) gaining on solid earnings.
In addition, the IPOX® International (ETF: FPXI) rose slightly on select gains in key holdings, outperforming the MSCI World ex-USA (MXWOU) by 163 bps. last week. Once again, the standout performer was the IPOX® 100 U.S. ESG (IPXT: +4.08%), led by healthcare firms Disc Medicine (IRON US: +18.28%) and drug subscription firm Hims & Hers (HIMS US: +14.23%). The Middle East-focused IPOX® MENA also surged +3.23% ahead of a week-long holiday in Saudi Arabia.
Other notable IPOX® holdings included Indonesian green energy giant Barito Renewables Energy (BREN IJ: +18.04%), rebounding after a recent plunge due to an index inclusion delay, as owner Prajogo increased his stake. Dutch pharma firm Pharvaris (PHVS US: +19.72%) led on extended gains after positive trial results. On the downside, UK fintech Wise (WISE LN: -16.45%) fell as its outlook missed estimates due to price cuts, and German supplier of radar equipment to Ukraine Hensoldt (HAG GR: -13.92%) fell on the election gains of France’s far-right.
IPOX® SPAC Index (SPAC): The Index added +0.32% last week to -2.99% YTD. Israeli law enforcement digital forensics solution provider Cellebrite DI (CLBT US: +14.57%) resumed strong momentum after profit taking. Former President Donald Trump’s social media platform Truth Social’s parent company Trump Media & Technology Group (DJT US) tanked -16.91% following an audit disclosure and issuance of existing share sales. Only 1 SPAC announced merger target include Bayview Acquisition (BAYA US) with Chinese supply chain finance and trade credit management company Oabay. 3 merger approvals this week with deals anticipated to close towards month-end including Catcha Investment (CHAA US) +2.17% with harsh weather LNG terminal developer Crown LNG. 1 new SPAC launched this week in the U.S.
ECM REVIEW AND OUTLOOK: International listings raised about $3 billion last week, including 14 sizable IPOs (e.g. +$25m offer) in accessible markets, which gained +22.73% (average) / +9.59% (median) between their offer price and Friday’s close. The largest listing was the $515m Abu Dhabi IPO of education firm Alef Education (ALEFEDT UH: -13.33%), followed by Chicago-based medical data company Tempus AI (TEM US: +8.78%, $411m offer) on Nasdaq. Saudi Arabia saw three large listings raising $600m, led by Saudi Manpower Solutions (SMASCO AB: +10.40%) as Tadawul exchange closes for the Eid al-Adha holiday this week. The London Stock Exchange welcomed the launch of Arm-backed low-cost hobby computer maker Raspberry Pi (RPI LN: +50.00%, $212m) as a sign of renewed investor confidence in UK equity markets.
Significant IPOs this week includes Italian luxury sneaker maker Golden Goose (GGDB IM, Wednesday) which is planning to use the proceeds from its $600m IPO to pay down debt obligations. Swedish retail real estate firm Prisma Properties (PRISMA SS, Tuesday) and clinical stage pharma company Cinclus Pharma (CINPHA SS, Thursday) plan to raise $148m and $66m in Stockholm, respectively. Australian fast food chain Guzman y Gomez (GYG AU, Thursday), operating 185 Mexican restaurants across Australia, plans to expand with IPO proceeds totaling around $224m.
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