SchusterWatch #776 (2/24/2025)
IPOX® Indexes navigate market headwinds, IPOX® China soars anew.
IPOX® 100 U.S. (ETF: FPX) maintains strong YTD lead as heavyweights dip.
Krystal Biotech +23% on earnings. Shift4 Payments drops on CEO departure.
Global IPOs raise $1.82b, 2 accessible global IPOs expected this week.
IPOX® WEEKLY REVIEW: Amid the shortened U.S. trading week and Friday’s options expiration, global equities faced headwinds as markets reacted to increasing long-run inflation expectations and softer U.S. economic data. This shift led to a “risk-off” move into bonds impacting most IPOX® Indexes. The IPOX® Health Innovation (IPHI: +0.71%) and IPOX® China (CNI: +6.75% to +19.83% YTD) defied negative trends, as the latter surged anew on continued positive domestic AI sentiment and Chinese government plans to stimulate consumer spending. Despite other IPOX® Indexes experiencing declines, their benchmark-beating performance with year-to-date leads is still highlighting the underlying strength of IPOX® Strategies as earnings season is in full swing.
After a historic run, the IPOX® 100 U.S. (ETF: FPX) fell -6.99% (+8.87% YTD) last week, while the IPOX® U.S. ESG (IPXT) pulled back -8.01%, keeping its very strong YTD performance at +12.13%. Earnings-driven positive movers included Krystal Biotech (KRYS US: +22.59%) investment data SaaS firm Clearwater Analytics (CWAN US: +16.16%), and real estate brokerage Compass (COMP US: +13.24%). Conversely, brokerage Robinhood (HOOD US: -20.96%) fell on crypto weakness and analyst concerns, while Shift4 Payments (FOUR US:
-21.68%) faces pressure as CEO Isaacman’s departure to lead NASA coincides with the announcement to acquire tax refund giant Global Blue for $1.5 billion. Heavyweights AppLovin (APP US: -18.59%) and Palantir (PLTR US: -14.95%) saw headwinds after a short-seller report and insider selling, respectively.
The IPOX® 100 Europe (ETF: FPXE) declined to +7.75% YTD. Positive contributions came from Dutch biotech Merus (MRUS US: +17.84%) on FDA breakthrough drug designation, cybersecurity firm Truecaller (TRUEB SS: +12.29%) climbed after exceeding earnings, and German defense firm Hensoldt (HAG GR: +11.67%) gained amid European rearmament spending plans. Cruise ship spa operator Onespaworld (OSW US: -15.20%) underperformed on revised revenue guidance.
The IPOX® International (ETF: FPXI) decreased -2.37% last week to +8.92% YTD. Top performers included Brazilian bank Caixa Seguridade (CXSE3 BS: +6.68%) and Indonesian miner Amman Mineral (AMMN IJ: +6.59%), while chipmaker ARM (ARM US: -9.21%) and Celestica (CLS CT: -9.41%) were weaker on softer AI sentiment.
THE IPOX® SPAC INDEX: The Index fell by -6.07% last week, bringing its year-to-date performance to -0.76%. Genetic testing company GeneDx (WGS US: 22.86%) rose amid strong revenue beat and raised analysts' price targets, defying a short report alleging fraud and illegal billing practices issued two weeks ago. The selloff of voice AI company SoundHound AI (SOND US: -32.39%) continued as news of Nvidia's exit news further pressured the stock. Two SPACs announced merger agreements include OTC-traded Arogo Capital Acquisition (AOGO US) with Thailand eSIM operator Bangkok Tellink. Puerto Rico-based early-stage aspirin product developer Aspire Biopharma (ASBP US) completed business combination with PowerUp Acquisition. Additionally, one new SPAC launched in the U.S. this week.
GLOBAL ECM REVIEW AND OUTLOOK: During the past week, 21 companies completed IPOs globally, raising $1.82 billion. New listings showed strong average performance last week, gaining +23.15% from offer price to Friday's close, with a median gain of +6.43%. The largest offer in accessible markets was Turkish hazelnut producer Balsu Gida (BALSU TI: -2.11%, $135 million). Swedish motion capture firm Qualisys (QSYS SS: +11.66%, $32 million) gained in debut. No sizable listings launched in the U.S. last week.
Looking ahead to another quieter week, we expect the debut of poultry company Entaj in Saudi Arabia ($120 million) and Japanese premium apparel and accessories brand TENTIAL (325A JP, $36 million).
Visit the IPOX® Calendar for this week’s listing overview and read The IPOX® Update for the latest IPO News, including a slew of upcoming listings in the Middle East, as well as Chinese dessert food chain giant Mixue planning a $443 million listing in Hong Kong for next week.
