The IPOX® Week #747
Upside Rout in global equities leaves IPOX® Equity Indexes on Top.
IPOX® Fixed Income Indexes surge, Investment Grade leads gains.
Our select list of 5 IPOX® Portfolio Holdings setting fresh records.
WeRide to debut on Friday. IPO plans of big fintechs Klarna, Revolut in focus
OVERVIEW: The IPOX® Equity Indexes soared last week to close on top of the global equity indexes performance rankings for a second week in a row, benefiting most from the big risk reversal trade (VIX: -27.34%) in the global equity benchmarks during August Options expiration week. Driven by the powerful mix of 1) solid macroeconomic numbers, 2) good earnings and 3) a mute inflationary outlook propelling fixed income with a focus on corporate bonds, big gains were universally seen across countries, regions and sectors. In the U.S., e.g., the broad-based IPOX® 100 U.S. ETF (FPX), leading benchmark for the performance of IPOs, Spin-offs and similar Corporate Actions of U.S. domiciled firms, surged +4.33% to +5.45% YTD, outperforming the Russell 2000 (IWM) and S&P 500 (SPY) anew.
Strong relative gains extended to IPOX® Portfolio Holdings with a domicile outside the U.S. For example, the IPOX® International ETF (FPXI) jumped +5.00% to +12.78% YTD, the IPOX® 100 Europe (ETF: FPXE) rose +4.44% to +15.23% YTD, the IPOX® Japan (IPJP) rocked higher by +10.53% to +9.75% YTD and the IPOX® MENA (IPEV) added +3.61% to +7.40% YTD, all much better when compared to their benchmarks. Similar sentiment extended to our IPO M&A-focused growth portfolios with the GINDEX® Growth Infusion International (GNDXI) extending its benchmark-adjusted lead by +199 bps. to a large +701 bps. YTD. The portfolio focuses on select and highly liquid non-U.S. domiciled firms pursing growth via M&A (“IPO M&A”) and closed the week at the highest level on record.
EARNINGS DRIVE STOCKS, TOO: In individual stocks, we note a select list of IPOX® Holdings setting a fresh weekly post-IPO High: 1) Top of the list ranks AST SpaceMobile (ASTS US: +46.30%), the TX-based satellite telecom carrier and de-SPAC. Amid buy-out rumors and corporate launch updates, the firm continued its incredible Momentum which pushed it to Meme Stock status. Added on June 21, the stock is a member of the IPOX® 100 U.S. ETF (FPX) and was recently covered in a highly publicized weekly research piece here: The IPOX® Watch: AST SpaceMobile Inc.. 2) Yubico (YUBICO SS: +26.47%): The Stockholm-based authentication-focused hardware provider and de-SPAC rose to a fresh High after reporting strong corporate results. The firm is covered in the IPOX® 100 Europe ETF (FPXE) and IPOX® Nordic (IPND). 3) Cellebrite DI (CLBT US: +19.66%): The IPOX® 100 Europe ETF (FPXE) member is an Israel-based software solutions provider for the intelligence industry and sored after reporting strong quarterly results which exceeded analysts estimates. 4) Strong earnings also drove Brazil Fintech Nu Holdings (NU US: +14.07%) to a fresh all-time High. The stock is heavily weighed in the IPOX® International ETF (FPXI). 5) Swedish Orphan Biovitrum (SOBI SS: +11.49%): Covered in the IPOX® International ETF (FPXI) and IPOX® 100 Europe ETF (FPXE), the Sweden-based IPO M&A soared after reporting positive results for Kidney Disease Treatment.
IPOX® CORPORATE BOND INDEXES: Corporate Bonds linked to IPOX® Portfolio Holdings followed the strength in other Corporates and Sovereign debt with the IPOX® Aggregate Composite Corporate Bonds Index (IPOXTD) soaring by +1.01% to +3.35% YTD. In the cross-section, IPOX® Corporate High Yield (IPXUHYG) added +0.64% to +5.36% YTD, while IPOX® Corporate Investment Grade (IPXULQD) surged +1.04% to +3.26% YTD.
IPOX® SPAC Index (SPAC): The Index rose +3.61% last week to -4.62% YTD. Israeli law enforcement digital forensics platform Cellebrite DI (CLBT US) rose +21.33% on strong earnings and boosted forecast. Lidar sensor company Ouster (OUST US) tanked -24.22% amid weaker than expected revenue outlook. 3 SPACs announced definitive target include Healthcare AI Acquisition (HAIA US) +0.53% with Chinese digital insurance broker Leading Group. Multiple SPACs completed business combination including Armada Acquisition I completed merger with London-based AI-powered e-commerce engagement platform Rezolve AI (RZLV US) -10.54%. SPAC activity rose again with 3 new SPACs launched this week in the U.S. DeSPAC veteran, financial service company B. Riley Financial (RILY US) -65.49% received founder’s offer to acquire all outstanding shares at close to 40% premium over previous close amid stock challenges.
ECM REVIEW AND OUTLOOK: In accessible markets, the U.S. IPO of Chinese cloud-based corporate education platform YXT.COM (YXT US: -8.91%) was the only sizable listing (e.g. +$25m offer size) last week, raising $25 million. Previously covered Illinois-founded Northwestern University start up Actuate Therapeutics (ACTU US: +8.75%) was downsized to raise $22.40 million, while the Nasdaq launch of Chinese Bosch-backed autonomous driving firm WeRide (WRD US, $119m offer) pushed its debut to Friday this week. The Indian market, while challenging to access for foreign investors, keeps seeing large listings, such as last week’s Softbank-backed children product retailer FirstCry (FIRSTCRY IN: +44.06%), which surged after raising $502 million.
This week, international IPOs include South Korean automotive robot maker Junjin Construction Robot (079900 KS, $38m offer) on Monday, the Hong Kong listing of cancer biotech TYK Medicines (2410 HK, $74m offer) on Tuesday, as well as Malaysian renewable energy company Elridge Energy (ELRIDGE MK, $45 million) on Thursday.
Read the IPOX® Update about the latest news, including the listing plans of Swedish buy-now-pay-later giant Klarna, British neobank Revolut, U.S. listing plans for luggage maker Samsonite and more ...
Follow our IPO Calendar and social media (e.g. Linkedin) for upcoming IPOs,
updates on our indexes and the latest IPO News.
