September 14, 2020
- IPOX Indexes trade mixed as IPOX Europe (ETF: FPXE) gains ahead of U.S. Futures & Option expiration.
- IPOX SPAC Index (SPAC) adds +1.78% last week.
- Amid strong demand for quality deals, global New Listings calendar busy: Snowflake, JFrog, Sumo Logic, Unity, Palantir, Knaus Tabbert and The Hut Group line up for debut.
IPOX Indexes trade mixed as Europe outperforms ahead of U.S. Futures & Options expiration. Amid declining risk (VIX: -12.62%) and U.S. yields, the IPOX Indexes traded mixed last week. In the U.S., e.g, the FANG-free, asset allocation-focused IPOX 100 U.S. (ETF: FPX) declined by -1.48% to +13.35% YTD, extending the YTD (YY) lead vs. the S&P 500 (SPX), benchmark for U.S. stocks, to +994 bps. (+654 bps.). Here, deteriorating sentiment for large-cap U.S. technology stocks after the big run-up weighed on sentiment (NDX: -4.60%) of the technology-focused portion of the IPOX 100 U.S. (ETF: FPX), including application software maker Coupa (COUP US: -14.87%), real time messaging software maker Slack (WORK US: -11.73%) and electronic signature solutions provider Docusign (DOCU US: -8.47%). A strong week for ride hailing services provider IPOX heavyweights Uber (UBER US:
and social networker SNAP (SNAP US: +7.80%) helped sentiment. Abroad, the IPOX International (IPXI), underlying for the $300 million “FPXI” ETF, dropped -0.94% to +40.73% YTD. Profit-taking across the Asia-Pacific-traded portion of the portfolio contributed significantly, including data center operator GDS (GDS US: -7.29%), ecommerce platform provider Meituan Dianping (3690 HK: -7.26%) and logistics services company SG Holdings (9143 JP: -6.29%). IPOX heavyweight Nexi (NEXI IM: +15.10%) surged after the Italian payment processor and SIA Group said to be close to clearing a key hurdle to their potential merger.
Track the performance of U.S. SPACs live with the IPOX® SPAC Index (BBG: SPAC, Reuters: .SPAC): The liquid IPOX SPAC (SPAC) added +1.78% last week, outperforming the S&P 500 (SPX) and Russell 2000 (RTY) anew. IPOX SPAC news include: 1) sales and marketing services provider Advantage Solutions to merge with Conyers Park II Acquisition; 2) zinc battery maker Eos Energy Storage enters into definitive agreement to combine with B. Riley Principal Merger II; 3) real estate tech unicorn Opendoor reportedly in talk with Social Capital Hedosphia II for reverse IPO; 4) Pershing Square Tontine split unit; 5) 9 SPACs launched and at least 8 SPACs filed last week.
|Select IPOX® Indexes Price Returns (%)||Last Week||2019||2020 YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global (IPGL50) (USD)||-2.15||27.93||35.35|
|IPOX® International (IPXI)* (USD) (ETF: FPXI)||-0.94||31.37||40.73|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||-1.48||29.60||13.35|
|IPOX® ESG (IPXT) (USD)||-2.57||–||–|
|IPOX® SPAC (SPAC) (USD)||1.78||–||–|
|IPOX® Indexes: Europe/Nordic|
|IPOX® 30 Europe (IXTE) (EUR)||2.16||34.55||19.18|
|IPOX® Nordic (IPND)||0.96||38.52||32.65|
|IPOX® 100 Europe (IPOE)* (USD)||1.85||30.97||13.87|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||-0.12||4.41||28.26|
|IPOX® China (CNI) (USD)||-2.59||26.31||48.28|
|IPOX® Japan (IPJP)** (JPY)||-1.97||37.91||9.48|
* Basis for ETFs: FPX US, FPX LN, FPXE US, FPXU FP, FPXI US, TCIP110 IT and CME-traded e-mini IPOX® 100 U.S. Futures (IPOM0). Source: Bloomberg L.P. & Refinitiv/Thomson Reuters. For IPOX Alternative Strategies Returns, please contact [email protected]
|Nexi SpA||15.10||Coupa Software Inc||-14.89|
|Selectquote Inc||14.34||Chewy Inc||-12.05|
|Camping World Holdings Inc||13.58||Slack Technologies Inc||-11.73|
|Adaptive Biotechnologies Corp||12.41||Zealand Pharma A/S||-11.68|
|DraftKings Inc||12.05||Tesla Inc||-10.90|
|Uber Technologies Inc||11.25||AZEK Co Inc/The||-10.59|
|BioNTech SE||11.20||NortonLifeLock Inc||-9.66|
|Infrastrutture Wireless Italiane||9.15||Bilibili Inc||-8.51|
|GFL Environmental Inc||8.74||DocuSign Inc||-8.47|
|Snap Inc||7.80||Knorr-Bremse AG||-8.13|
IPO Deal-flow Review and Outlook: Korean messaging app Kakao‘s game unit more than doubles in debut. Flurry of deals lined up. 6 firms went public across the eligible global markets last week, with the average (median) equally-weighted offer deal adding +61.50% (+28.17%) based on the difference between final offer price and respective Friday’s close. Deals including Chinese bottle water giant Nongfu Spring (9633 HK: +62.79%), Korean messaging app Kakao’s Game unit spin-off (293490 KS: +237.92%) and Warburg-backed Brazilian pet store Petz (PETZ3 BZ: +18.91%) all debuted strongly, while fast food chain Yum China (9987 HK: -3.64%) fell on its homecoming secondary H.K. offering. The U.S. IPO market is set for a busy week with firms including Buffett and Salesforce-backed $24B cloud data platform Snowflake (SNOW US), Dell-backed $3B+ DevOps software developer JFrog (FROG US), Tiger Global-backed $2B+ data analytic firm Sumo Logic (SUMO US), and Sequoia-backed $11B+ game software company Unity (U US) lined up, while the European IPO market is set to revive with British e-commerce unicorn The Hut Group and German camper van maker Knaus Tabbert (KTA GR) scheduled. Much anticipated data analytics unicorn Palantir (PLTR US) also readies its Direct Listing. Other IPO news include: 1) CVC-owned Petco weighs IPO sale; 2) collaborative software unicorn Asana set date for Direct Listing (9/30).
Track global deal flow live on: https://bit.ly/32zolmG
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