The IPOX® Week, September 6th, 2021

  • IPOX® Indexes rise across the board, beat benchmarks. China recovery.
  • Germany’s DAX adds IPOX® International and IPOX® 100 Europe heavyweights.
  • IPOX® SPAC gains +0.75%. 7 new SPACs launched in the U.S. last week.
  • Little IPO deal flow lined up ahead of busy Q4 global IPO calendar.

WEEKLY Summary:  The broad-based benchmarks drifted higher across the globe last week, as rates and risk (VIX: +0.10%) remained subdued, while the strong global earnings story remained intact, and China recovered for a second week. Weak U.S. employment data released into the long U.S. holiday weekend did little to deter sentiment. The IPOX® Indexes continued to benefit more than when compared to the benchmarks: In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX) added +0.92% to +11.05% YTD, outpacing the S&P 500 (SPX), benchmark for U.S. stocks. Good sentiment extended to markets abroad, with the IPOX® International (ETF: FPXI) and IPOX® 100 Europe (ETF: FPXE) adding +2.35% to +1.71% YTD and +0.96% to +15.25%, respectively, both well ahead of the benchmarks. Asia-Pacific traded equally firm.

IPOX® EUROPE Investing with the “FPXE” ETF since 2018

Big IPOX® Corporate Actions: In IPOX® Corporate Actions, we are pleased to note the addition of 03/2018 Spin-off health care firm Siemens Healthineers (SHL GY: -1.11%) and 11/2017 IPO food delivery platform HelloFresh (HFG GY: -0.21%) to Germany’s DAX Index. Both firms are tracked in the IPOX® International (IPXI, 6.12% combined weight) and IPOX® 100 Europe (IPOE, 10.13% combined weight).

WEEKLY IPOX® portfolio holDings in focuS:  U.S. domiciled firms recording the most significant upside during last week’s trading included hard-hit online insurance agent 05/2020 IPO Selectquote (SLQT US: +44.55%), 09/2020 Direct Listing application software maker Asana (ASAN US: 21.27%), retailer P/E backed 06/2020 IPO Albertsons Cos. (ACI US: +17.47%) and independent oil and gas company IPO M&A Range Resources Corporation (RRC US: +13.87%).  In IPOX® exposure linked to non-U.S. domiciled companies tracked in the IPOX® International (ETF: FPXI) and IPOX® 100 Europe (ETF: FPXE), Chinese video games maker 03/2018 IPO Bilibili (BILI US: +14.10%), Canadas’s infrastructure software maker 03/2019 IPO Lightspeed Commerce (LSPD CT: +13.92%), Singapore-based IT services provider 10/2017 IPO Sea (SE US: +10.07%) and Chinese e-commerce behemoth 09/2018 IPO Meituan (3690 HK: +8.80%) stood out. Poor earnings and/or a muted growth outlook pressured U.S. online pet store operator 06/2019 IPO Chewy (CHWY US: -12.89%) and U.S. communication app operator 04/2019 IPO Zoom Video (ZM US: -12.48%), e.g.

Select IPOX® Indexes Price Returns 2020 Last WEEK YTD
IPOX® Indexes: Global/International
IPOX® Global Super Liquid (IPGL50) (USD) 66.63 0.92 3.65
IPOX® International (IPXI) (USD) (ETF: FPXI) 72.15 2.35 1.71
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 47.32 0.92 11.05
IPOX® ESG (IPXT) (USD) 42.29 1.33 14.59
IPOX® SPAC (SPAC) (USD) 48.52 0.75 -7.31
IPOX® Indexes: Europe/Nordic
IPOX® Europe (IPOE) * (USD) (ETF: FPXE) 35.14 0.96 15.25
IPOX® Nordic Core (IPND) (EUR) 59.89 1.42 21.45
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 47.50 1.27 3.41
IPOX® China Core (CNI) (USD) 88.02 4.92 -24.56
IPOX® Japan (IPJP) (JPY) 25.75 2.60 11.38

* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOU1). *also available In UCITS format in Europe in EUR (EPFX IM,), USD (IPXE LN), and GBP (FPX LN).

IPOX® SPAC INDEX (SPAC): The Index added +0.75% to -7.31% YTD and +37.68% since its 7/30/2020 launch last week, marking the first positive weekly close for the IPOX® SPAC Index in ten weeks with companies including Social Capital VI (IPOF US: +6.12%), Social Capital IV (IPOD US: +2.82%) and Bridgetown Holdings (BTWN US: +2.47%) leading the way.  SPAC news include: 1) Only 1 SPAC Announced Merger Agreement: a) Petra Acquisition with clinical stage life sciences company Revelation Biosciences2) 5 SPACs Approved Business Combinations such as: a) CM Life Sciences II with protein biomarker platform SomaLogic (SLGC); b) Genesis Park Acquisition with space infrastructure startup RedWire (RDW) and c) Supernova Partners with residential real estate platform proptech Offerpad (OPAD). 3) 7 new SPACs launched last week in the U.S.

WEEKLY GLOBAL Deal-flow Review and Outlook:  Only 5 IPOs launched globally with the average equally weighted deal adding +45.39% based on the difference between the final offer price and Friday’s close. Amid the holiday-driven low August IPO action, the U.S. saw Its first IPO listing in two weeks with Korean game developer DoubleDown Interactive (DDI US: -10.28%) debuting negatively. Abroad, Korean hydrogen fuel tube trailer producer Iljin Hysolus (271940 KS: +160.64%) soared based on final offer. Ahead of U.S. Futures and Options expiration week and re-balancing, no significant deal flow Is scheduled during the shortened U.S. trading week. Other IPO news include a) UAE state-owned metal producer Emirates Global Aluminum (EGA) selected bankers for IPO at more than $15 billion valuation; a) Italian defense group Leonardo to revisit U.S. subsidiary DRS IPO; b) France’s Antin Infrastructure Partners joins the private equity firms IPO queue; c) Bain and Toshiba co-owned Japanese memory chipmaker Kioxia favors IPO over merger, arranges to list in November; d) communities network Reddit mulls potential IPO and e) Peloton rival NordicTrack maker iFit Health filed for IPO.

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Source: https://www.lightspeed.com/active-trading-blog/the-ipox-week-september-6th-2021/

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