April 11, 2022

• IPOX® 100 U.S. (ETF: FPX) falls first week in three. Soaring global yields weigh on growth stocks.
• Except for the strong IPOX Japan, declines extend to markets abroad. GINDEX outperforms anew.
• IPOX SPAC follows markets lower. Amid rates and regulatory overhang, just 1 U.S. SPAC launched.
• Big Week for IPOs: GoTo (GOTO IJ), DEWA (DEWA UH) and Excellerate Energy (EE US) lined up.

Last week’s Summary: Following three weeks of gains, the IPOX Indexes fell ahead of the shorted U.S. options expiration week, pressured by big declines in growth stocks amid more confirmed FED hawkishness drove a big jump in U.S. interest rates. In the U.S., e.g., the IPOX 100 U.S. Index (IPXO) – benchmark for U.S. New Listings performance and underlying for the $1.5 billion “FPX” ETF, shed by -3.82 to -13.66%   YTD,  outperforming U.S. small-caps, but lagging the S&P 500 (ETF: SPY) benchmark for U.S. stocks. Except for an upside week for the IPOX Japan (IPJP), declines extended to markets abroad with the IPOX China (CNI) leading the way.

Last week’s big movers:  Amid earnings, significant upside in the IPOX 100  U.S. Index (IPXO) was recorded by IT services provider System 1 (SST US), a recently included de-SPAC small-cap. Ahead of the ATT (T US: +0.67%) Spin-off of Film & TV firm Discovery (WBD US),  we also note the fresh post Spin-off high in Constellation Energy (CEG US: +10.34%), while healthcare technology solutions provider Change Healthcare (CHNG US: +8.99%) rose on its agreement to combine with Optum. Amid the difficult week for growth stocks and cryptos, companies including semiconductor devices maker SiTime (SITUM US:  -20.61%), electric car maker Rivian (RIVN US: -16.45%) and crypto exchange Coinbase (COIN US: -13.92%) ranked towards the bottom of the weekly performance ranking. Abroad, ahead of another big week for IPOs, most recent IPOs in the Gulf Region extended their recent gains on a weekly basis, such as agricultural chemicals maker Fertiglobe (FERTIGLB DH: +16.01%), IT services provider Elm (ELM AB: +5.68%), utility ACWA (ACWA AB: +5.53%) and stock exchange operator Saudi Tadawul (TADAWULG AB: +0.31%). China-domiciled exposure ranked towards the bottom, including social networking platform operators Kuaishou (1024 HK: -11.64%) and Meituan (3690 HK: -6.29%).

IPOX® Growth Infusion (GNDX) update:  The  portfolio   declined by -0.87% to -2.42% YTD, outperforming the U.S. benchmarks.  Energy and large-cap pharma contributed to the strong relative showing, including independent energy firm Southwestern Energy (SWN US: +8.84%) and a slew of (Midwestern) drug makers including IL-based Abbvie (ABBV US: +7.55%) and Horizon Pharma (HZNP US: +5.62%), as well as IN-based Eli Lilly (LLY US: +6.50%).

Select IPOX® Indexes PRICE Returns	last week	YTD	2021
IPOX® Indexes: Global/International
IPOX® Global Super Liquid (IPGL50) (USD)	-3.74	-18.15	-4.01
IPOX® International (IPXI) (USD) (ETF: FPXI)	-2.53	-16.01	-15.57
IPOX® Indexes: United States
IPOX® Composite U.S. (IPXC) (USD)	-1.87	-12.12	-1.01
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) †	-3.82	-13.66	+3.70
IPOX® Growth Infusion (GNDX)* (USD)	-0.87	-2.42	+9.42
IPOX® SPAC (SPAC) (USD)	-2.02	-11.10	-16.34
IPOX® Canada (ICDX) (CAD)	+0.10	-5.57	n/a
IPOX® Indexes: Europe/Nordic
IPOX® Europe (IPOE) (USD) (ETF: FPXE) †	-3.31	-22.65	+9.09
IPOX® Nordic Core (IPND) (EUR)	+0.44	-17.27	+20.34
IPOX® Indexes: Asia-Pacific/China
IPOX® China Core (CNI) (USD)	-5.64	-22.57	-42.62
IPOX® Japan (IPJP) (JPY)	+1.34	-15.57	+3.42

*Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOM2). ^†Also available in UCITS format in Europe in EUR (EFPX IM), USD (IPXE LN), and GBP (FPX LN/FPXE LN). GNDX and SPAC returns measured since live launch on 08/13/2021, 07/30/2020 and 11/17/2020.

Weekly IPOX® SPAC INDEX (SPAC) REVIEW:   The index declined by -2.02% to -11.10% YTD and +10.47% since its 07/30/2020 live launch. 1) 3 SPACs Announced Merger Agreement include a) Riverview Acquisition (RVAC US: +1.33%) with coffee and tea provider Westrock Coffee Company and b) Iron Spark I (ISAA US: +0.40%) with Hong Kong-traded influencer platform and e-commerce marketplace Hypebeast (150 HK: +30.86%) in dual listing. 2) No SPAC Approved Business Combination. 3) 1 SPAC Terminated Merger include a) MDH Acquisition (MDH US: +0.41%) with digital vehicle plans provider olive.com. 4) Only 1 SPAC launched last week in the U.S.

Weekly Global IPO Deal-flow Review:  Only 2 sizeable IPOs launched globally last week with the average equally weighted company adding +113.80% based on the difference between the respective final offer price and Friday’s close, Key firms included Indonesian digital reality metaverse company small-cap Wir Asia (WIRG IJ: +227.38%) and Swedish digital contract management and automation firm micro-cap Oneflow (ONEF SS: +0.22%). After a two-months IPO drought, the U.S. window is set to open with energy player Exellerate Energy (EE US), active in the red-hot market for LNG, lined up. Abroad focus is on Indonesia super-app, ride hailing giant Gojek and e-commerce Tokopedia merger GoTo (GOTO IJ) and Dubai’s power and water plants operator Dubai Electricity & Water Authority (DEWA UH). Other IPO news include a) Canadian asset management firm CI Financials plans to spin off its U.S. wealth management unit; b) Private equity firm KKR to list semiconductor manufacturing equipment producer Kokusai Electric in Tokyo’s largest IPO in three years; c) Vietnamese EV maker VinFast filed for U.S IPO; d) Advent International-owned Austrian power equipment maker Innio on track to IPO; and e) more Gulf-domiciled firms set to list, including Saudi Aramco’s refining company Luberef, MENA’s KFC and Pizza Hut franchise owner Americana, and Saudi oilfield services firm, Schlumberger backed Arabian Drilling.

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