The IPOX® Week #757
Top innovation benchmark IPOX® 100 U.S. widens 440 bps. Y/Y gap vs. Nasdaq.
Global IPOX® Momentum continues with focus on European small caps.
Thematic biotech strength propels benchmark-beating IPOX® Health Innovation.
IPOX® CEO Josef Schuster Interview with Reuters on Ingram Micro’s IPO.
IPOX® 100 U.S. Index: As earnings season is about to kick off for the IPOX® Holdings, most IPOX® Equity Strategies edged higher on continued momentum, alongside gains in the IPOX® Corporate Bonds. After big bank earnings surprised in the week prior, U.S. sentiment remained positive in large Financials, with Goldman Sachs reaching a new all-time high and treasury yields remaining steady. In the U.S., e.g., the IPOX® 100 U.S. Index (ETF: FPX) gained +0.76%, solidifying its position as benchmark for U.S. IPO performance and innovation, taking another 50 bps. from the Nasdaq 100 last week. This propels our index to an impressive +40.72% year-over-year performance, climbing further ahead of the S&P 500 (+35.93%) and Nasdaq 100 (+36.32%). Last week’s outperforming holdings included investment firm Blue Owl Capital (OWL US: +11.45%, new all-time high) and crypto exchange Coinbase (COIN US: +24.85%) on a surge in bitcoin prices, despite pledges by Vice President Harris to increase regulation in the sector. On the back of space momentum amid SpaceX’s rocket launch success, DeSPAC satellite firm AST SpaceMobile (ASTS US) surged +16.38%. Social media platform Reddit (RDDT US: +10.44%) reached a new post-IPO high on price target upgrades and surging call option volume.
GLOBAL IPOX® INDEXES: Amid interest rate cuts in the Eurozone as inflation continues to fall, the IPOX® International Index (ETF: FPXI) and the IPOX® 100 Europe Index (ETF: FPXE) both showed continued relative strength against their benchmarks, taking 94 bps. from the MSCI World ex-USA (MXWOU) and 47 bps. from the STOXX Europe 50, respectively. Standout performers included small cap firms, such as online marketplace Baltic Classifieds (BCG LN: +7.20%) cruise spa services firm OneSpaWorld (OSW US: +4.46%), chemicals firm Solvay (SOLB BB: +5.92%), investment platform AJ Bell (AJB LN: +7.32%). Luxembourg-based beverage can maker Ardagh Metal Packaging (AMBP US: +13.67%) hit a new 52-week high after receiving multiple buy ratings at U.S. banks, ahead of announcing earnings this week.
THEMATIC IPOX® STRATEGIES: Surges in select health care holdings propelled the IPOX® Health Innovation Index (IPHI: +1.99%) to +12.16% YTD and a new post-launch high, now outperforming the S&P Biotech ETF (XBI) and the Nasdaq Biotechnology Index (NBI) by +36 bps. and +166 bps. this year, respectively. IPOX® holdings in the sector with strong performances last week included Swedish orphan-drug specialist SOBI (SOBI SS: +7.91%) on lackluster vaccine trial results by competitor Merck. British respiratory disease specialist Verona Pharma (VRNA US: +5.98%) continues strong momentum after analyst upgrades. Hong Kong-listed pharma firm Akeso (9926 HK: +7.29%) published positive cervical cancer treatment results. Muscle dystrophy therapy developer Avidity Biosciences (RNA US: +8.26%) surged after competitor Fulcrum Therapeutics dropped out after failed trials.
Among our other strategies, the IPOX® U.S. Climate 100 / ESG (IPXT: +1.24%) climbed to an impressive +37.09% YTD, while the innovative GINDEX® U.S. Index, focusing on the companies that inject growth by acquiring IPOs, gained +1.85%.
THE IPOX SPAC INDEX (SPAC): The Index added +2.52% last week to positive +0.07% YTD. Telemedicine platform Hims & Hers Health (HIMS US: +18.51%) surged as report on FDA reconsider its decision to bar selling cheaper knockoff versions of Eli Lilly’s weight-loss drug. Online casino and sports betting game developer Rush Street International (RSI US: -14.00%) fell on the week. No SPACs announced definitive merger targets or completed mergers. No new SPAC launched this week in the US. Among other news, 05/2024 deSPAC OpenAI Sam Altman-backed nuclear small modular reactors company Oklo (OKLO US: +99.23%) almost doubled on plans by Google and Amazon plans to invest in nuclear power for their data centers.
ECM REVIEW AND OUTLOOK: 21 firms debuted globally last week, raising a total of $2.6 billion, with an average (median) gain of +103.75% (+21.53%) based on the difference between final offer and Friday’s close. The largest IPO was Polish convenience store operator Zabka Group (ZAB PW: -0.65%), which fell slightly after raising $1.68 billion in the country’s largest listing since IPOX® Europe member Allegro.eu (ALE PW) in 2020. Swedish real estate Sveafastigheter (SVEAF SS: 0.00%) traded unchanged after a $299 million spin-off from IPOX® Europe member Samhallsbyggnadsbolaget i Norden (SBBB SS: -14.00%). Japanese eyewear firm Intermestic (262A JP: +21.53%) climbed after raising $123 million, ahead of this week’s focus on Tokyo listings from scientific instrument maker Rigaku (268A JP, $781 million) and the $2.4 billion IPO of subway operator Tokyo Metro (9023 JP), incoming member of the IPOX® International Index.
Other significant international listings this week include Abu Dhabi food services provider ADNH Catering (ADNH UH, $235 million) and the record breaking listing of car maker Hyundai Motor India ($3.35 billion), which has however faced muted demand. Korean online bank K Bank has postponed its listing to next year, after failing to gather support for its planned $577 million raise.
In the U.S., the $400m listing of global technology distributor Ingram Micro (INGM US) is expected for Thursday. IPOX® CEO Josef Schuster was interviewed by Reuters on the IPO and the role of private equity firms in the market. (Read here)
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