SchusterWatch #775 (2/17/2025)
IPOX® Indexes extend historic run-up as The New Generation soars anew.
IPOX® 100 U.S. (ETF: FPX) gains +4.69% to +18.90% YTD last week.
AppLovin tops week with +35.77% surge. Krafton plunges -18.54%.
Big week for U.S. IPOs as Sailpoint, Karman raised $1.96b collectively.
IPOX® WEEKLY REVIEW: Strong earnings from key IPOX® Holdings, more explosive gains for the IPOX® China (CNI: +5.55%) amid volatility in U.S. rates after sobering U.S. inflation data continued to propel the historic (relative) Momentum in the IPOX® Indexes ahead of the long holiday weekend in the United States. The IPOX® U.S. Universe (IPXC) and its sub-portfolios such as the IPOX® 100 U.S. (ETF: FPX) and IPOX® 100 U.S. ESG (IPXT) also led the way, with respective IPOX®-linked products topping the Y/Y and YTD U.S. Fund performance rankings.
The divergence of returns of positions to capture the New Generation remained notable, as IPOX®-Style continued to outpace their equally weighted counterparts by the largest margin in our 21-year live history.
In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX) soared +4.69% to +18.90% YTD, far outpacing the S&P 500 (SPX: +1.47%), Russell 2000 (RTY: +0.01%) and MAG 7-heavy Nasdaq 100 (NDX: +2.90%). Here, 53% of stocks rose, with the average (median) equally weighted firm lagging the applied market cap weighted IPOX® 100 U.S. (ETF: FPX) by a historical margin, adding just +0.37% (+0.08%). Defining, mostly earnings-driven moves in select stocks made the difference, including best-in-breed AI play yet-to-be tracked in the S&P 500 (SPX) IPOX® heavyweight AppLovin (APP US: +35.77%), restaurant group Dutch Bros (BROS US: +22.75%) and telecom de-SPAC AST SpaceMobile (ASTS US: +21.09%), while recent Spin-off Sphere construction group Everus (ECG US: -31.50%) plunged after disappointing corporate forecasts.
IPOX® tracking portfolios of non-U.S. domiciled stocks traded in line to somewhat lower vs. the benchmarks. For example, IPOX® International (ETF: FPX) added +1.55% to +11.54% YTD, while the IPOX® 100 Europe (ETF: FXPE) gained +1.58% to +10.37% YTD and the IPOX® High Dividend 7% added as strong +1.55% to +4.99% YTD. With earnings season in full force, we note the excellent week for Nordic engineering services provider Storskogen (STORB SS: +24.31%), Europe’s work management software maker Monday.com (MNDY US: +23.33%) and H.K-traded retailer Pop Mart (9992 HK: +9.59%), while Korea’s gaming platform Krafton (259960 KP: -18.54%) plunged. Ahead of more IPO activity in global Fintechs, we note the good week in Japan’s SBI Sumishin Netbank (7163 JP: +6.38%), recovering from the previous week’s NTT-related big decline.
THE IPOX® SPAC INDEX: The Index gained +1.80% last week, extending its performance to +5.65% YTD. Big upside focus was on Telehealth platform Hims & Hers Health (HIMS US: +42.12%) which recorded a massive gain after Sunday’s Super Bowl advertisement success. Big declines were recorded in Voice AI company SoundHoud AI (SOUN US: -20.45%) after Nvidia’s stake sale. In other SPAC news, integrated power generation company E2companies is set to merge with Nabors Energy Transition Corp II (NETD US) while two SPACs completed a business combination, including Singapore-based games and entertainment content provider GCL Global (GCL US) with RF Acquisition. Four new SPAC launched in the U.S. this week.
GLOBAL ECM REVIEW AND OUTLOOK: 22 companies went public globally this past week, raising $3.7 billion. New listings showed mixed performance, with the average IPO gaining +3.27% from offer price to Friday’s close, while the median listing declined -0.44%. The largest IPO was the relisting of cybersecurity firm SailPoint (SAIL US: -4.35%) on the NASDAQ, raising a substantial $1.38 billion. In Europe, Spanish travel technology company HBX Group (HBX SM: -0.87%, $776 million) and luxury logistics provider Ferrari Group (FERGR NA: +2.91%, $206 million) also debuted. Karman (KRMN US: +45.45%, $582 million), an aerospace and defense company, was a strong performer on the NYSE. Hong Kong saw bubble tea chain Guming (1364 HK: -5.43%, $233 million) list on the HKEX.
Looking ahead to a quieter week amid Monday’s U.S. market holiday, Sweden-based motion capture technology firm Qualisys (QSYS SS, $32 million) and Japanese apparel and accessories brand Tential (325A JP, $36 million) are expected to list internationally.
Visit the IPOX® Calendar for this week’s listing overview and read
The IPOX® Update for the latest IPO News.
