SchusterWatch #780 (3/24/2025)
IPOX® 100 U.S. (ETF: FPX) soars +3.13%, improved sentiment aids S&P.
Gains extend to Markets abroad as IPOX® Japan (IPJP) adds +3.21%.
Robinhood (HOOD US), Sportradar (SRAD), Genius Sports (GENI US) lead.
Big IPO, big Debut: Japan’s JX Advanced Metals (5016 JP) launches strong IPO.
IPOX® WEEKLY REVIEW: The IPOX® 100 U.S. (ETF: FPX) soared +3.13% to -2.49% YTD during FED, IPOX Rebalancing and Q1 Futures and Options Expiration week, recovering more from the recent sell-off. Firm bonds, lower risk (VIX: -11.44%), more short covering amid upgrades of key names, less erratic news flow as well as big deals done in the Private Markets (Google + Wiz) underpinned the continued improvement in IPOX® Risk Sentiment from which trading in the benchmarks benefited as well. Relative performance spreads strongly favored the IPOX® 100 U.S. (ETF: FPX) for the 2nd week in a row, with the portfolio extending the YTD (Y/Y) lead vs. benchmarks S&P 500 (SPX), Nasdaq 100 (NDX) and Russell 2000 (RTY) to +118 bps. (+126 bps.), +351 bps. (+156 bps.) and +529 bps. (+1138 bps.), respectively.
The distribution of individual portfolio returns in the IPOX® 100 U.S. narrowed, with the average (median) equally-weighted stock adding +1.99% (+1.99%), lagging the applied market-cap weighted IPOX® 100 U.S. anew. Amongst the portfolio holidngs, stand-outs included innovation plays investment platform Robinhood (HOOD US: +13.05%), language app Duolingo (DUOL US: +9.09%) and gaming/education platform Roblox (RBLX US: +8.23%), while IPO M&A Healthcare play Healthequity (HQY US: -12.86%) fell sharply.
IPOX® Indexes focusing on non-U.S. domiciled exposure followed U.S. strength last week. Amongst the Regional IPOX® Indexes, top of the list ranked the IPOX® Japan (IPJP: +3.21% to +0.69% YTD), benefiting from another good week in some of the largest recently listed IPOs, including transportation stock Tokyo Metro (9023 JP: +7.48%) and Fintech SBI Sumishin Net Bank (7163 JP: +6.93%). In the cross-section of Europe’s regions, we also note another solid week for our porfolio holdlings domiciled in the Nordic region across market caps with Norway-based oilfield services & equipment prover 15% yielder DOF Group (DOFG NO: +10.38%) and music platform Spotify (SPOT US: +4.38%) leading the way, and propelling the IPOX® Nordic (IPND) by +2.45% to +5.34% YTD, while the Nordic benchmarks declined. Across othe parts of Europe, we note the good week for Sports Betting-related exposure traded in the United States, with Swiss-based Sportradar (SRAD US: +11.16%) and London’s Genius Sports (GENI US: +13.28% benefiting from a broad upgrade of the sports betting sector on March Madness enthusiam. The beleaguerred IPO market across the GCC stabilized last week, with IPOX® heavyweight dividend play Adnoc Drilling Co. (ADNOCDRI DH: +4.13%) leading the way higher amongst individual stocks.
THE IPOX® SPAC INDEX: The Index gained 0.70% to -10.12%. YTD last week. Metal card manufacturer CompoSecure (CMPO US: 2.54%) and alternative asset management platform spin-off Resolute (RHLD US: 10.35%) advanced. Meanwhile, quantum computing company IonQ (IONQ US: -10.96%) fell. Cohen Circle Acquisition Corp. I (CCIR US: 8.53%) signed a business combination agreement with telecommunication and digital services company VEON (VEON US: 9.30%) to publicly list Kyivstar Group, Ukraine’s leading digital operator. Two new SPACs were launched in the U.S. last week.
GLOBAL ECM REVIEW AND OUTLOOK: 19 firms IPO’d last week, raising a total of $3.25 billion, with the average (median) IPO gaining +68.20% (+16.83%) from offer price to Friday's close. The week was dominated by high purity metals maker Japan’s JX Advanced Metals (5016 JP: +16.83%) which surged after raising $2.5 billion in Japan's largest IPO since SoftBank in 2018. Other notable deals included Saudi poultry company Entaj Industrial Services (ENTAJ AB: +20.00%, $120 million) and Chinese endocrinology pharma Visen Pharmaceuticals (2561 HK: 0.00%, $101 million). 7 sizable IPOs are expected, including Swedish diagnostics firm Asker Healthcare (ASKER SS, $869), Europe's largest IPO of the year so far, Mecca project developer Umm Al Qura (MASAR AB, $523 million), Chinese aluminum producer Nanshan Aluminum (2610 HK, $330 million), Indonesian sweets maker Yupi Indo Jelly (YUPI IJ, $125 million), Singapore-based oil and gas equipment firm OMS Energy Technologies (OMSE US, $50 million), Japanese autonomous driving map provider Dynamic Map Platform (336A JP, $50 million), and digital solutions firm Process Technologies Group (339A JP, $50 million).
Visit the IPOX® Calendar for this week’s listing overview and read
The IPOX® Update for the latest IPO News.
