The IPOX® Week #753
Most IPOX® Indexes extend YTD Momentum into Q3 2024 quarter end.
U.S. Corporate debt extends YTD gain vs. U.S. Treasuries.
Amid historic week, China-linked stocks lead weekly performance rankings.
Aircraft services firm StandardAero to raise $1.4B on NYSE on 10/2.
OVERVIEW: Ahead of Q3 2024 quarter-end and the Chinese Golden Week holiday, the IPOX® Indexes extended their YTD Momentum to close higher or well supported. Big gains in the JPY on political vows in Japan weighed on sentiment into the weekend. Amid solid U.S. economic numbers and renewed concerns about the size of the U.S. government debt, we note more relative strength in the IPOX® Corporate Bond Index (IPOXTD) with the spread differential to its benchmark extending post-Fed to rise to a large +98 bps. YTD. The portfolio currently pools the performance of 1204 highly liquid U.S. traded bonds issued by IPOX® Holdings active in ECM/DCM across High Yield and Investment Grade.
Across the IPOX® Equity Indexes Universe we note more gains on the global level, with the super-liquid IPOX® Global 50 (IPGL50) adding +1.33% to +18.30% YTD, now +436 bps. Y/Y ahead of the MSCI World Index (MXWO), benchmark for global stocks. While the IPOX® 100 U.S. (IPXO) consolidated after its massive quarterly absolute and relative gain, we note another good week for the IPOX® MENA (IPEV), with the highly liquid and dividend portfolio of stocks traded acrossthe UAE and Saudi Arabia adding +1.17% to +13.51% YTD, +1164 bps. ahead of the MENA market. Amongst our Thematic Portfolios, we note more strength in the IPOX® 100 U.S. ESG (IPXT) which added +0.85% to +29.51% YTD (+47.96% Y/Y).
Amid the historic jump for Hong Kong stocks, China-linked firms led the weekly performance rankings, including travel website operator Trip.com (TCOM US: +26.02%) and JD Logistics (2618 HK: +31.68%). Notable upside moves across non-China domiciled exposure also included U.S. crypto exchange operator Coinbase (COIN US: +12.43%), Nordic-based high end sportswear maker Amer Sports (AS US: +8.19%), Dubai-based infrastructure construction services provider Salik (SALIK UH: +4.80%), German luxury car maker Porsche (P911 GY: +14.95%), while Baltic Classified Group (BCG LN: +5.29%) was a stand-out amongst European small-caps in the IPOX® 100 Europe (IPOE).
Declines across health-care exposure weighed on the respective IPOX® Indexes, led by heavyweight IPO M&A Regeneron (REGN US: -8.94%).
THE IPOX SPAC INDEX (SPAC): The Index fell -0.16% last week to -4.79% YTD. Telehealth platform Hims & Hers Health (HIMS US: +9.02%) climbed higher. E&P company Magnolia Oil & Gas (MGY US: -7.00%) fell on insider sale. 2 SPACs announced merger target include FutureTech II Acquisition (FTII US: +0.63%) with biopharmaceutical firm Longevity Biomedical. Acri Capital Acquisition completed merger with smartphone, tablet and other integrated IoT electronics provider Foxx Development (FOXX US: -19.14%). No new SPACs launched this week in the U.S. 2021 deSPAC title Insurtech Doma (DOMA US: +2.28%) closed previously announced go private transaction as title insurance underwriter Title Resources Group completed the acquisition. Nano Dimension (NNDM US: +13.96%) announced to acquire 2021 deSPAC industrial 3D printer manufacturer Markforged (MKFG US: +149.21%) at $5.00 per share, an 83% premium to its previous close. Nano Dimension previously announced to acquire metal and carbon fiber 3D printing company, 2020 deSPAC Desktop Metal (DM US: +1.08%) with a 27.3% premium in July, the deal is pending.
ECM REVIEW AND OUTLOOK: 37 new listings launched globally this week, raising a total of $1.63 billion, with an average gain of +29.73% and a median gain of +14.76% between offer price and Friday’s close. The largest listings in accessible markets came from the U.S., led by natural gas producer BKV Corp (BKV US: +0.28%), which raised $270 million. Obesity-focused pharmaceutical firm BioAge Labs (BIOA US: +16.67%) followed, raising $223 million, while pharmacy firm Guardian Pharmacy Services (GRDN US: +14.29%) secured $112 million. Globally, India ECM activity remains high, with 15 listings raising $225 million, while market momentum in Japan returns with 7 listings, the largest being job search platform ROXX (241A JP: -14.74%) raising $42 million. Here, the Tokyo Exchange is expecting the combined $3.1 billion listings of train operator Tokyo Metro and testing firm Rigaku in October, while memory chip maker Kioxia has now postponed its IPO due to lackluster performance of publicly listed competitors.
This week’s notable listings include commercial REIT FrontView (FVR US, $507m offer) and airplane engine service firm StandardAero (SARO US, $1.38 billion) on NYSE, Scientific journal publisher Springer Nature (SPG GR, $710m) in Frankfurt, and Tiktok-viral kitchenware maker Carote (2549 HK, $96m) in Hong Kong.
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