SchusterWatch #777 (3/3/2025)
Big Risk-off pressures IPOX® anew, mixed earnings weigh as well.
IPOX® 100 U.S. (ETF: FPX) falls to +2.54% YTD, still leads U.S. benchmarks.
Utilities firm Itron +16% on earnings, AppLovin dives on short seller pressure.
Chinese beverage giant Mixue leads this week’s listings with $449m IPO.
IPOX® WEEKLY REVIEW: Friday ended a turbulent month for most equity benchmarks, with the IPOX® Indexes largely mirroring broader market volatility (VIX: +19.48% in February) and big risk-off sentiment amid escalating geopolitical tensions, trade tariff announcements, mixed earnings and the sizable decline in yields towards month-end.
In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX) - key proxy for the performance of U.S. New Listings – shed -5.81% to +2.54% YTD, however, still retained a sizeable YTD lead versus the S&P 500 (+1.06% YTD), Nasdaq 100 (-0.61% YTD) and Russell 2000 (-3.17% YTD). Amid earnings, we note the good week for utilities innovation acquirer Itron (ITRI US: +15.91%), topping the performance rankings after strong earnings and analyst upgrades, while Jackson Financial (JXN US: +12.15%) and Fidelity National (FNF US: +8.53%) benefited from the rebound in financial stocks. 3M’s healthcare spin-off Solventum (SOLV US: +9.22%) initially surged on earnings before trimming gains after headwind warnings towards the week-end.
On the negative side, tech holdings faced continued pressure following last week's broader sell-off. App monetization specialist AppLovin (APP US: -21.57%) extended its decline amid short-seller pressure, while tax software provider Vertex (VERX US: -26.96%), Instacart (CART US: -21.53%) and language learning platform Duolingo (DUOL US: -19.02%) retreated significantly following earnings.
Non-U.S. holdings fared better, with the IPOX® International (ETF: FPXI) declining -3.40% to +5.24% YTD. Upside came from Canadian financials including Definity (DFY CT: +6.40%) and Fairfax (FFH CT: +3.69%), offset by weakness in Japanese holdings, e.g., semiconductor testing equipment maker Advantest (6857 JP: -15.72%) leading decliners. Trade war fears dragged the tech-heavy IPOX® Japan Index (IPJP) down -4.44% to -4.36% YTD.
The IPOX® 100 Europe (ETF: FPXE) demonstrated relative stability, retreating -1.80% to +5.82% YTD. German car platform Auto1 (AG1 GR: +20.52%) led gainers, while defense contractor Hensoldt (HAG GR: +14.95%) benefited from the ongoing rally in European defense stocks. Tech holdings weighed on performance, as computer maker Raspberry Pi (RPI LN: -11.39%) and semiconductor giant ARM (ARM US: -9.08%, also in IPOX® International) falling amid the broader tech sector correction. The IPOX® Nordic showed resilience with a +0.29% gain.
THE IPOX® SPAC INDEX: The Index declined by -3.53% last week, bringing its year-to-date performance to -4.26%. Metal card maker CompoSecure's alternative asset management platform spin-off Resolute (RHLD US: +80.08%) soared following the completion of its separation. Meanwhile, bitcoin mining data center operator Cipher Mining (CIFR US: -25.68%) fell amid the $1.5 billion security breach at Bybit exchange and recent decline in bitcoin prices as Trump-fueled surge fades. Helix Acquisition II (HLXB US) signed a business combination agreement with BridgeBio Pharma (BBIO US) subsidiary biopharmaceutical company BridgeBio Oncology Therapeutics. No SPAC completed business a combination this week. Additionally, four new SPACs launched in the U.S. this week.
GLOBAL ECM REVIEW AND OUTLOOK: 19 companies went public globally this past week, raising a total of $669 million, with the average IPO gaining +20.58% from offer price to Friday's close (median: +6.53%). Japanese luxury clothing and bedding firm Tential (325A JP: +37.55%) was the only sizable IPO in accessible developed markets, raising $35 million. Looking ahead, four significant listings are expected this week: Malaysian pipe fittings manufacturer Pantech Global (PGLOBAL MK, $40 million) and Chinese beverage giant Mixue Group (2097 HK, $443 million) on March 3, followed by U.S. listings for wearable defibrillator maker Kestra Medical Technologies (KMTS US, $150 million) on March 6 and oil and gas equipment provider OMS Energy Technologies (OMSE US, $50 million) on March 7.
Visit the IPOX® Calendar for this week’s listing overview and read
The IPOX® Update for the latest IPO News, including CoreWeave’s upcoming $4 billion listing at $35 billion valuation.
