The IPOX® Week #741
Indexes build on post-expiration Momentum as IPOX® Bonds surge.
IPOX® International (ETF: FPXI) gains as IPOX® Japan soars +3.3%.
IPOX® 100 ESG/Climate aware beats out Nasdaq to +24.00% YTD gain.
H.K. lines up BABA-backed Baiwang, AI-play Voicecomm for debut.
SUMMARY: The IPOX® Indexes built on their strong post-expiration rally last week as relentless momentum-driven asset allocation buying and related hedging pushed the S&P 500 (ETF: SPY) and Nasdaq 100 (ETF: QQQ) further into uncharted territory. Muted economic numbers and smoother geopolitical sailing after France and the UK's elections also supported towards the weekend, indicated by a big rebound in the IPOX® Aggregate Corporate Bond Index (IPOXTD). The unique and highly liquid portfolio tracking the price of U.S.-traded fixed income of IPOX® Holdings soared +0.91% to +0.48% YTD, with strong gains extending to its sub-portfolios, including the IPOX® Investment Grade Bond Index (IPXULQD) and IPOX® High Yield Bond Index (IPXUHYG).
Moving to equities, the IPOX® 100 U.S. (ETF: FPX) – key performance benchmarks for U.S.-domiciled IPOs and spin-offs – added +0.89% to +4.81% YTD, performing better compared to the Russell 2000 (ETF: IWM) and S&P Mid Cap (ETF: MDY), but lagging behind the Nasdaq 100 (ETF: QQQ) and S&P 500 (ETF: SPY), benchmarks for U.S. stocks. Firms leading the gains included some of last week’s best performers, such as takeover target glaucoma-focused IPO M&A Glaukos (GKOS US: +2.89%), social networker Reddit (RDDT US: +14.21%), and wireless telecom services-focused de-SPAC AST SpaceMobile (ASTS US: +6.80%). Among the U.S.-focused IPOX® Strategies, we continue to note with interest the big performance leap of ESG/Climate Aware exposure, with the IPOX® 100 U.S. Climate/ESG-focused portfolio (IPXT) adding +1.64% to +24.00% YTD, handily outpacing the performance of the S&P 500 ESG (SPESG) and Nasdaq 100 (ETF: QQQ), YTD/YY.
In non-U.S. domiciled exposure, select IPOX® Regional Indexes continued to propel gains in the IPOX® International (ETF: FPXI). The fully rebalanced portfolio added +2.23% to +13.71% last week to close out the shortened U.S. trading week towards a fresh one-year high, more than doubling the performance of the benchmark YTD (Y/Y) and continuing to recover from post-COVID losses.
Here, top of the list ranked the IPOX® Japan (IPJP). The portfolio of 40 highly liquid Japan-domiciled companies added +3.28% to +18.29% YTD last week, significantly outpacing respective benchmarks. A key contributor to the big jump was the 10/2023 IPO semiconductor maker Kokusai Electric (6505 JP: +19.62%), which soared alongside IPO M&As Renesas (6723 JP: +8.31%) and TDK (6762 JP: +8.87%), as well as a slew of high-growth small-cap exposures such as Japan Eyewear (5889 JP: +8.22%) and multi-services provider Genda (9116 JP: +15.14%), for example. The big performance jump among those Japan- and Taiwan-traded portfolio holdings last week also propelled the exclusively international IPO M&A-focused GINDEX® Growth Infusion International (GINDEX: +2.34%), with the large-cap-focused portfolio extending the benchmark-adjusted YTD lead to +463 bps, closing out Friday at a fresh weekly all-time high.
Continued gains in European-domiciled firms trading in the U.S., foremost semiconductor maker ARM Holdings (ARM US: +10.74%), contributed to propelling the IPOX® 100 Europe (ETF: FPXE), adding +1.43% to +16.18% YTD, slightly lagging the European market last week.
IPOX® SPAC Index (SPAC): The Index fell -0.01% last week to -3.71% YTD. Eureka Acquisition Corp (EURKU US: +0.78%) launched as the only SPAC in the USA last week, as the $50 million IPO began trading on Tuesday. Two new SPACs, Cayson Acquisition Corp (CAPNU US) and Calisa Acquisition Corp (ALISU US), each filed for $60 million IPOs with EarlyBirdCapital underwriting. Andretti Acquisition Corp II (POLEU US) filed for a $200 million IPO, marking the largest of the new SPAC filings in 2024. In merger activity, AI Transportation Acquisition Corp (AITR US: +0.06%) announced a combination with recycling firm American Metals, a subsidiary of American Resources (AREC US), in a $170 million equity value deal.
ECM REVIEW AND OUTLOOK: New listings raised $1.6 billion globally last week, including 5 sizable (>$25m offer size) small cap IPOs in accessible markets, which fell -3.13% (average) / gained +2.55% (median) between offer price and Friday’s close. While no IPOs debuted in the U.S. amid the shortened trading week, Korean rocket aerospace firm Innospace (462350 KS: -30.95%) was the largest new listing, plummeting after raising $42 million. In Istanbul, Turkish tea company Efor Cay (EFORC TI: +2.55%) raised $40 million, while sweets producer Segmen Kardesler (SEGMN TI) fell -9.00% following its $32 million IPO. In Italy, tech firm SYS-DAT (SYS IM) gained +7.35% after a $36 million offering. Italian utility Distribuzione Elettrica Adriatica (DEA IM) surged +14.38% after raising $26 million, marking the week's top new IPO performer.
This week's IPO Calendar features six new listings, collectively aiming to raise over $685 million. The largest offering comes from Chenqi Technology (9680 HK), a Chinese ride-hailing firm backed by state-owned GAC Group, seeking up to $177 million in Hong Kong. Cirrus Aircraft (2507 HK), a U.S.-based personal jet manufacturer owned by a Chinese state enterprise, plans to raise $197 million. Malaysia's Johor Plantations Group (JOHO MK) is set for the country's largest listing in two years, targeting $156 million. AI solutions provider Voicecomm (2496 HK) aims for $86 million, while Alibaba-backed tax software provider Baiwang (6657 HK) and online medical services firm Fangzhou (6086 HK) seek $43 million and $26 million, respectively.
Follow our IPO Calendar and social media (e.g. Linkedin) for updates on upcoming IPOs.
Read the latest IPOX® Update summary of last week’s IPO News.
