The IPOX® Week, June 7th, 2021

June 7, 2021

• IPOX® Indexes start June well bid as risk and U.S. yields decline. IPOX® International (ETF: FPXI) and IPOX® Europe (ETF: FPXE) gain for third straight week.
• IPOX® SPAC gains anew, adds +1.03% last week.
• Uruguay’s dLocal (DLOC US) surges in U.S. trading debut. Marqueta (MQ US), LifeStance Health (LFST US), Italian Sea Group (TISG IM) and Believe (BLV FP) lined up.

Summary:  Most IPOX® Indexes extended the string of weekly gains during the shortened U.S. trading week, supported by falling risk (VIX: -2.03%) and U.S. yields, amid strong earning amongst select holdings. With the IPOX 100 U.S. (ETF: FPX) trading virtually flat last week, notable gains were recorded in exposure linked to non-U.S. domiciled firms, including the IPOX® Europe (ETF: FPXE) and IPOX® International (ETF: FPXI) which also benefited from a re-bound in the IPOX® China (CNI).

Investing in non-U.S. domiciled exposure with IPOX® ETFs:

Focus amongst individual IPOX® Portfolio Holdings was on U.S. signature solutions provider 04/2018 IPO DocuSign (DOCU US: +15.68%) whose shares surged after reporting a better-than-expected quarterly update. A diverse group of other IPOX® stocks also set fresh all-time highs into the weekend, including German biotech vaccine maker 10/2019 IPO BioNTech (BNTX US: +14.36%), video gaming platform operator 03/2021 Direct Listing Roblox (RBLX US: +6.19%), industrial IPO M&A Borg Warner (BWA US: +6.16%) as well as London-based specialty online retailer Moonpig Group (MOON LN: +4.19%) which surged on FTSE 250 inclusion. Sleep Apnea treatment provider 05/2018 IPO Inspire Medical (INSP US: -15.12%) ranked as the worst performing company last week.

* Basis for CME-traded e-mini IPOX^® 100 U.S. Futures (IPOM1).

The IPOX® SPAC (SPAC) added +1.03% to -1.92% YTD and +45.68% since its 7/30/2020 launch. SPAC news include: 1) 2 SPACs Announced Merger Agreements include: a) GigCapital4 with PE-backed AI startup BigBear.ai and b) Alkuri Global with London-based telehealth Babylon Health. 2) 3 SPACs Approved Business Combination include: a) TS Innovation with smart lock maker Latch (LTCH: 6/7); b) Juniper Industrial with self-storage provider Janus International (JBI: TBD) and c) Jaws with senior care centers operator Cano Health (CANO). 3) SPAC reportedly in talks include Pershing Square Tontine which is to acquire 10% of Universal Music Group from Vivendi upon UMG’s Q3 listing in Amsterdam, an unconventional stock purchase deal (NOT merger), the deal would have to be approved on 6/22 to advance. 4) No new SPACs launched last week in the U.S.

IPO Deal-flow Review and Outlook:   11 notable IPOs started trading last week with the average (median) equally weighted deal adding +7.36% (+1.10%) on the week. Consumer Staple Monde Nissin (MONDE PM: -0.74%) had a lukewarm debut as Philippine’s largest IPO in history, while Uruguay’s dLocal (DLOC US: +64.38%) soared. The U.S. IPO market is gearing up for a busy week with payments firm Marqueta (MQ US) and outpatient mental health services group LifeStance Health (LFST US) in focus. Deals in Europe include luxury yacht maker, Italian Sea Group (TISG IM) and record label and music distributor Believe (BLV FP) set to launch. Other IPO news include: a) doughnut maker Krispy Kreme, cybersecurity platform SentinelOne, LinkedIn spinout software developer Confluent, Cosan & Royal Dutch Shell joint venture, sugar maker and fuel distributor Raizer file for IPO; b) more IPOs in talks include Amsterdam-based file sharing platform WeTransfer, Russian gold mining company Nordgold, PE-owned Baltic online classified advertising platforms portfolio BCG, Saudi Arabia’s bottle water giant Berain Water, Intel-backed Chinese AI chip unicorn Horizon Robotics, skincare brand Paula’s Choice and designer clothes rental Rent the Runway.

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