SchusterWatch #779 (3/17/2025)
Market Recovery as IPOX® 100 U.S. (ETF: FPX) finds Buyers, adds +0.74%.
Rubrik (RBRK US) propels IPOX® U.S. sentiment after strong earnings.
China, Europe, Nordic, High Divi 7% still lead IPOX® Indexes YTD.
Strong IPO performance bodes well for JX Advanced Metals (5016 JP).
IPOX® WEEKLY REVIEW: The IPOX® 100 U.S. (ETF: FPX) rose +0.74% to -5.44% YTD last week, recovering some of the steep losses recorded after hitting an all-time closing high on February 18th. Stable yields, lower risk (VIX: -6.85%) and a bit more Positivity around the daily political news flows underpinned by some explosively strong earnings amongst some key industry stocks contributed to the improvement in IPOX® Sentiment, which eventually also spread to the hard-hit U.S. benchmarks S&P 500 (SPX: -2.27% to -4.13% YTD), Nasdaq 100 (NDX: -2.46% to -6.22%) and Russell 2000 (RTY: -1.51% to -8.34% YTD) ahead of expiration week. Amid the big swings, the distribution across individual portfolio returns in the IPOX® 100 U.S. remained widely dispersed, with the average (median) equally-weighted stock shedding -0.45% (-1.29%), lagging the applied market-cap weighted IPOX® 100 U.S. Stand-outs included infrastructure software maker 04/24 IPO Rubrik (RBRK US: +23.17%) which soared after corporate results. Hard-hit communications equipment maker Credo Technology (CRDO US: +12.47%), LGBT website operator de-SPAC Grindr (GRND US: +11.89%) and heavyweight electrical power GE-Spin-off GE Vernova (GEV US: +8.41%) underpinned the big relative strength. With crypto exchanges Gemini and Kraken set to go public over the foreseeable future with respective filings in, incumbents Robinhood (HOOD US: -11.66% and Coinbase (COIN US: -15.79%) fell sharply.
IPOX® Indexes focusing on non-U.S. domiciled exposure traded well supported last week. Top of the list here ranked the IPOX® Japan (IPJP: +3.65% to -2.44% YTD). Ahead of the blockkbuster IPO of miner JX Advanced Metals (5016 JP) this week, e.g., we note the strong post-IPO showing of some large recently IPO’d and IPOX®-held deals in Japan, such as semiconductor devices maker $11 billion Kioxia (285A JP: +80.49% since IPO), as well as burgoining Financial $8 billion Rakuten Bank (5838 JP: +48.85%) and Tokyo subway operator Tokyo Metro (9023 JP: +14.15% since IPO). In the cross-section of Europe’s regions, we also note the solid week for our porfolio holdlings domiciled in the Nordic region across market caps with Finland-based department store chain Puuilo (PUUILO FH: +14.04%), Norway’s engineering services provider Norconsult (NORCO NO: +5.71%) and Spin-off wireless telecom operator Stockholm-based Tele2 (TEL2B SS: +3.13%) driving the weekly gain in the IPOX® Nordic (IPND: +1.00% to +2.83% YTD), while most Nordic benchmarks fell.
THE IPOX® SPAC INDEX: The Index declined by -1.30% to -10.75% YTD last week. Beaten down quantum computing firm IonQ (ION US: +21.65%) surged on insider buying as quantum stocks rallied following strong earnings from D-Wave (QBTUS US: +95.95%). Meanwhile, bitcoin miner Cipher Mining (CIFR US: -21.85%) continued its downward spiral on analyst’s downgrades. No SPAC announced a business combination last week. However, three SPACs completed business combinations, including Inflection Point Acquisition II with pre-commercialized U.S. rare earth magnet manufacturer USA Rare Earth (USAR US: +42.80%). No new U.S. SPACs debuted last week.
GLOBAL ECM REVIEW AND OUTLOOK: 17 firms went public globally last week, raising a total of $2.27 billion, with the average (median) IPO adding +30.39% (+8.60%) based on the difference between the final offering price and Friday’s close. The largest deal belonged to Swedish investment firm Röko (ROKOB SS: +7.52%, $502 million raise), followed by Saudi Financial Services Firm Derayah Financial (DERAYAH AB: +31.00%, $399 million), Chinese gold miner Chifeng Jilong (6693 HK: +2.04%, $363 million) and Omani Shipping firm Asyad Shipping (ASCO OM: -2.44%, $333 million). In upcoming IPO action this week, top of the list ranks aforementioned Japanese Metals specialist JX Advanced Metals (5016 JP, $3 billion), the largest Japanese IPO since Softbank in 2018. Other firms lined up include Saudi poultry producer Entaj Industrial Services (ENTAJ AB, $120 million), South Korean factory automation equipment maker TXR Robotics (4844810 KS, $29 million) and Hong Kong biopharma Visen Pharma (2561 HK, $92 million).
Visit the IPOX® Calendar for this week’s listing overview and read
The IPOX® Update for the latest IPO News.
