The IPOX® Week #718
IPOX® Indexes rise as Nasdaq 100 Momentum decelerates.
IPOX® Nordic, IPOX® China, GINDEX® record big weekly gains, outperform.
P/E-backed BTSG slumps in NY-trading debut. Biotech IPOs shine.
Read about the IPOs set to commence trading this week below.
IPOX® PERFORMANCE REVIEW: The IPOX® Indexes finished the week broadly higher, as U.S. yields drifted up anew, earnings releases were negative for select stocks, and equity risk remained stable (VIX US: -0.30%). In the U.S. and ahead of earnings for some of its key members, e.g., the IPOX® 100 U.S. (ETF: FPX), benchmark for the performance of the typically largest and best performing U.S. domiciled IPOs, added +0.64% to -1.55% YTD, in line with the Nasdaq 100 (NDX), which saw its big Momentum decelerate towards the weekend. Except for the IPOX® MENA (IPEV), strength extended to markets capturing non-U.S. domiciled stocks with the IPOX® China (CNI) and IPOX® Nordic (IPND) leading the way. Indeed, and underlying the impact of the current dislocation across China-domiciled equities, the IPOX® China (CNI) extended its YTD relative advance vs. benchmark Hang Seng Tech (HSTECH) to a massive +849 bps. We also note the good week for acquirers of IPOX® members captured in GINDEX® U.S. (GNDX) and GINDEX® International (GNDXI) with earnings generally positively impacting the performance of the highly liquid portfolios, adding +1.41% and +1.31% last week, respectively.
IPOX® STOCKS IN FOCUS: In the U.S., 63/100 companies in the IPOX® 100 U.S. (ETF: FPX) rose last week, with the average (median) portfolio holding adding +0.91% (+0.63%), outperforming the applied market-cap weighted index. Amid more biotech buy-out and IPO frenzy, top of the list ranked development stage biotech Arcellx (ACLX US: +13.66%), followed by online education stock Coursera (COUR US: +13.10%) and AI-solutions provider AppLovin (APP US: +7.68%). Expectations about an additional guest fee perceived to propel future revenue also pushed heavyweight vacation rental marketplace Airbnb (ABNB US: +6.92%) to a strong week. Coconut water maker The Vita Coco Co. (COCO US: -10.15%) as well as factory automation equipment maker Symbotic (SYM US: -7.03%) ranked as the worst performing portfolio holdings. Across non-U.S. domiciled stocks, the story of the week belonged to German-biotech Morphosys (MOR GY: +22.00%), a firm tracked in the IPOX® 100 Europe (ETF: FPXE). The stock soared amid sector enthusiasm, alongside other European-domiciled IPOX®-held biotechs including Dutch-based Pharvaris (PHVS US: +9.71%), Swiss-based Moonlake Therapeutics (MLTX US: +6.82%) and Swedens Bonesupport (BONEX SS: +5.74%). Strong gains across Nordic small-caps including sports media marketing firm Better Collective (BETCO SS: +10.55%), application software maker Link Mobility (LINK NO: +8.47%) and BW Energy (BWE NO: +5.86%) also drove the IPOX® Nordic (IPND) to a fresh multi-year high. Big advanced in stocks extended to select IPOX® exposure across the Middle East and Japan, notably Saudi hospital operator Dr. Sulaiman Al-Habib (SULAIMAN AB: +5.65%) and Japan’s leading fintech M&A Research (9552 JP: +8.55%). U.S. sanctions concerns pressured Chinese biotech Wuxi CDX Cayman (2268 HK: -17.92%) which ranked at the bottom of the IPOX® Indexes last week.
IPO MARKET REVIEW: Four significant IPOs commenced trading last week, with the average (median) company adding +95.02% (+47.74%) based on the difference between the final offering price and first close. Top of the list ranked Korean shipbuilding components maker small-cap Hyundai Hyms (460930 KS: +300%), while biotech IPO M&A fever clearly pushed sentiment for U.S.-traded CG oncology (CGON US: +84.37%) and ArriVent (AVBP US: +11.11%). After cutting size and range, the largest deal of the week, however, the IPO of U.S. health services provider KKR-backed capital structure deal Bright Spring Health Services (BTSG US: -15.38%) flopped.
NOTABLE GLOBAL IPO DEAL FLOW WEEK 01/29/24: With more companies filing, notable ECM activity is set to involve the following companies: U.S. software maker micro-cap Docola Inc. (DOCO US), micro-cap H.K. based Financial PR Services Provider Intelligent Group (INTJ US), small-cap U.S. biotech FibroBiologics (FBLG US) and Saudi Pharma maker Avalon Pharma. The largest and most significant deals belong to sportswear maker Helsinki-based Amer Sports (AS US) and Sodexo Spinoff Pluxee (PLX FP).
IPOX® SPAC INDEX (SPAC): The Index of 50 constituents trading at both the pre- and post-consummation added +0.94% to -2.61% YTD. IPOX® SPAC Leaders last week was Mexican household products distributor Betterware de Mexico (MWMX US: +9.20%). Warehouse supply chain robotic company Symbotic (SYM US: -7.03%) fell as a series of insiders reports sales. Other SPAC news from last week include: 1) 1 SPAC Announced Merger Agreement include CSLM Acquisition (CSLM US: +0.18%) with Nepal-based AI software company Fusemachine. 2) 2 SPACs Approved/Completed Business Combinations include Deep Medicine Acquisition (DMAQ US: -3.86%) approved merger with golf simulator company TruGolf (TRUG: TBA). 3) 2 SPACs announced to liquidate. 4) No new SPAC launched last week in the U.S.
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