The IPOX® Week #746
IPOX® 100 U.S. ETF (FPX) adds +2.68% during week of big market gyrations.
Our list of Top 5 IPOX® Holdings setting fresh all-time Highs this week.
IPOX® High Yield Corporate Bond Index (IPXUHYG) in focus.
India’s ECM unfazed by Asia rout, with debuts raising $1.6 billion.
OVERVIEW: Massive market gyrations left most IPOX® Equity Indexes on top of the weekly U.S. equity indexes performance rankings, managing to reverse the previous week’s relative losses. Ahead of U.S. options expiration week, equity risk plunged on the week (VIX: -12.91%), while U.S. government bonds fell and yields rose. In the U.S., the IPOX® 100 U.S. ETF (Ticker: FPX, covered in an in-depth analysis on Seeking Alpha), the leading benchmark for the performance of IPOs, Spin-offs and similar Corporate Actions of U.S. domiciled companies, surged +2.68% to +1.07% YTD, outperforming the Russell 2000 (IWM), S&P 500 (SPY) and Nasdaq 100 (QQQ) by a massive +403 bps., +272 bps. and +229 bps., respectively. Strong relative gains extended to IPOX® Holdings with a domicile outside the U.S.. For example, the IPOX® International ETF (FPXI) rose +2.11% to +7.41% YTD, while the IPOX® 100 Europe (ETF: FPXE) added +1.32% to +10.33% YTD, better when compared to their respective benchmarks.
EARNINGS DRIVE STOCKS, TOO: While this week’s disappointing earnings pressured online travel marketplace Airbnb (ABNB US: -10.26%), we also note a select list of IPOX® Holdings setting a fresh weekly post-IPO High: 1) Top of the list ranks U.S. consumer play, China-domiciled JS Global Lifestyle (1691 HK) 7/31/2023 Spin-off SharkNinja (SN US: +16.40%). Most known for its cutting-edge vacuum cleaners, the IPOX® International ETF (FPXI) member soared after reporting stellar quarterly corporate results. 2) IT Services provider Parsons Corp (PSN: +4.50%): The IPOX® 100 U.S. ETF (FPX) portfolio holding extended its post-earnings rally to +48.01% YTD, with Momentum-Buying further propelled by potential buy-out interest as strong earning amongst software stocks has benefited overall sentiment for software stocks. 3) Monday’s announcement of cosmetics giant L’Oreal (OR FP) to take a 10% stake propelled dermatology focused Swiss specialty pharma firm Galderma (GALD SW: +13.15%). Added at its 03/22/24 IPO, the company is tracked in the IPOX® 100 Europe ETF (FPXE). 4) While investment bank Goldman Sachs (GS) recently downgraded the stock, England-based GSK-Spin-off Haleon (HLN LN: +1.87%), an IPOX® 100 Europe ETF (FPXE) holding, continued to build momentum as investors seek safety in consumer health care stocks. In related news - in what is a big turnaround in technical sentiment - beleaguered U.S.-based 05/23 J&J (JNJ US) Spin-off Kenvue (KVUE US: +11.69%) surged last week. 5) 05/24 de-SPAC AST Spacemobile (ASTS US: +14.59%) extended its YTD gain to +251.74%, becoming one of the most trending companies across social media in the process. The stock was added to the IPOX® 100 U.S. ETF (FPX) in June, is highly shorted and has just received approval from the FCC to launch its first five commercial BlueBird satellites. It also is gathering interest from investors and traders as a liquid proxy exposure for SpaceX, who is launching the satellites next month. We at IPOX® have covered the stock in a highly viewed weekly piece here: The IPOX® Watch: AST SpaceMobile Inc.
IPOX® BOND INDEXES: Turning to the analysis of corporate bonds issued by IPOX® Holdings, we note continued relative strength in the IPOX® High Yield Corporate Bond Index (IPXUHYG) last week (Figure) and closing the week towards the highest level YTD and outperforming the benchmarks.
IPOX® SPAC Index (SPAC): The Index fell -1.86% last week to -7.95% YTD. Swiss biotech MoonLake Immunotherapeutics (MLTX US) rose +7.19% despite wider loss. Last week’s best performer LNG company NextDecade (NEXT US) plunged -40.12% after court ruled to strike down the company’s LNG project permit amid environmental activists and local community advocate’s challenge. No SPAC announced definitive target. Multiple SPACs completed business combination including Tristar Acquisition I completed merger with Singapore-based AI-enabled customer support platform Helport (HPAI US) -63.47%. 2 new SPACs launched this week in the U.S.
ECM REVIEW AND OUTLOOK: The global IPO market saw moderate activity last week, with 20 companies going public and raising a combined $1.45 billion. India’s market, unfazed by market turmoil in the rest of Asia, saw the three largest debuts. EV scooter maker Ola Electric (OLAELEC IN: +20.00%) raised $733 million, followed by pharma contract manufacturer Akums Drugs & Pharmaceuticals (AKUMS IN: +18.28%) with a $222 million offering, and infrastructure construction firm Ceigall India (CEIGALL IN: -0.99%) which raised $150 million. In Hong Kong, autonomous driving chipmaker Black Sesame International (2533 HK: -23.21%) plummeted after raising $134 million, while insurance firm Zhongmiao (1471 HK: -8.57%) collected $32 million. Notably, the U.S. market saw no traditional IPOs last week, though there are signs of a potential revival in the SPAC market.
Looking ahead, this week's calendar features several sizable international offerings. In India, Brainbees Solutions is set to list on August 13 on the BSE and NSE, aiming to raise up to $500 million with its online platform for mother and baby products. On the same day, Indian SaaS e-commerce solutions provider Unicommerce eSolutions targets a $33 million raise. The U.S. market will see some action with the August 15 Nasdaq debut of Chinese cloud-based corporate education platform YXT.COM Group Holding (YXT US), which is looking to secure around $34 million in its offering.
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