The IPOX® Week #744
IPOX® 100 U.S. beats S&P 500 and Nasdaq anew. IPOX® Bonds advance.
IPOX® Nordic advances to 19.79% YTD. IPOX® Canada Opportunities leads.
Yen pressures IPOX® Japan. Job app Timee, largest TSE IPO 2024, climbs 14%.
Lineage climbs after $4.4bn raise. KKR-backed OneStream soars 40%.
SUMMARY: The IPOX® Indexes demonstrated resilience amid a week characterized by Federal Reserve rate cut speculation and significant market rotation. The IPOX® 100 U.S. (ETF: FPX) outperformed major benchmarks, declining -0.39% but beating the S&P 500 by +44 bps and the Nasdaq 100 by a substantial +216 bps. This outperformance came as investors rotated out of tech and AI stocks, favoring financials, industrials, and consumer staples. Economic data fueled expectations for a Fed easing cycle, with U.S. consumer sentiment falling to an eight-month low.
IPOX® Bond Indexes gained across the board as Treasury 10-Year yields retreated to 4.19%. The shift in sentiment propelled small caps and drove homebuilder stocks in the IPOX® 100 U.S. higher, such as residential pool and outdoor living firm Hayward Holdings (HAYW US: +11.79%), furniture maker Masterbrand (MBC US: +6.19%) and mortgage servicer Mr. Cooper (COOP US: +7.42%). The standout performer in our index was satellite tech firm AST Spacemobile (ASTS US: +46.73%), soaring on news of its first commercial satellite launch with SpaceX. Conversely, cybersecurity giant Crowdstrike (CRWD US: -16.00%) continued to struggle amidst concerns over multi-billion dollar litigation related to customer losses from its worldwide outage.
Amid a rout in tech, the IPOX® Europe (ETF: FPXE) was weighed down by British chipmaker Arm (ARM US: -8.81%), while the IPOX® International (ETF: FPXI) was impacted by weakness in Japanese stocks facing pressure from a stronger yen and growing doubts about AI, with Kokusai Electric (6525 JP: -25.91%) and TDK Corp (6762 JP: -11.09%) experiencing sharp declines despite a lack of company-related news. Other notable gainers reaching new all-time highs included Israeli digital intelligence firm Cellebrite (CLBT US: +11.35%) and Belgian pharma giant UCB (UCB BB: +8.49%). Former Novartis generics and biosimilars division Sandoz (SDZ SW: +4.45%) also hit a new post spin-off high.
Regionally, the IPOX® Nordic (IPND) bucks the trend over falling benchmarks edging up +0.17%, extending its impressive year-to-date gain to +19.79%, bolstered by Swedish music streaming giant Spotify (SPOT UN: +9.07%) beating earnings expectations.
The IPOX® Canada Opportunities (ICDX) emerged as the top performer last week, adding +1.23%, with heavyweights like Constellation Software (CSU CN: +6.10%) reaching new post-IPO highs. The IPOX® Health Innovation Index (IPHI) also showed strength, amid several standout performances in the sector. Centessa Pharmaceuticals (CNTA US: +14.32%) climbed on an analyst upgrade, hospital operator Tenet Healthcare (THC US: +13.77%) beat earnings.
IPOX® SPAC Index (SPAC): The Index fell -0.03% last week to -0.85% YTD. De-SPAC drug subscription service Hims & Hers (HIMS US: +12.10%) rebounded as it aims to shake up the weight loss market after hiring a new executive from Novo Nordisk, amid FDA warnings of dosing errors when offering weight loss drug Ozempic. Former President Donald Trump’s social media platform Trump Media & Technology Group (DJT US) fell -10.12% as US election race continues. At least 4 SPACs announced merger target include FTAC Emerald Acquisition (EMLD US) with bitcoin reward company Fold. 1 new SPAC launched this week in the U.S.
ECM REVIEW AND OUTLOOK: Last week, 21 IPOs raised around $6.5 billion in accessible markets, with 11 sizable (+$25m) offers gaining an average/median of 11.63%/5.21% from their offer price to Friday’s close, with the 4 largest listings on U.S. exchanges. Here, we saw a total of 8 debuts, including the largest IPO this year so far, temperature-controlled warehouse REIT Lineage Logistics (LINE US: +6.26%), which raised $4.44 billion after an upsized offer. KKR-backed accounting software company OneStream (OS US: +40.00%) surged after raising around $564 million. Concentra Group (CON US), largest occupational health services operator in the U.S., fell -2.74% after pricing slightly below range. Emerging out of its 2020 bankruptcy, Chilean flag carrier airline LATAM (LTM US: +5.21%) listed ADRs worth $456 million on NYSE, without raising new funds. Internationally, Japanese job matchmarking app platform Timee (215A JP: +13.79%) gained after raising $294m in Japan’s largest IPO of 2024. Malaysian jewelry and pawn shop operator Well Chip Group (WELLCHIP MK: +49.57%, $37m) was the standout performer among sizable listings.
This week looks to be quiet for large international IPOs, with South Korean power converter firm Sanil Electric (062040 KS) being the only sizable firm on our watchlist, aiming to raise $192 million.
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updates on our indexes and the latest IPO News.
Read the latest IPOX® Update for a summary of last week’s news.
