IPOX Weekly Summary
· IPOX U.S., IPOX China lead IPOX Global to Fresh 2012 Highs: Amid continued jitters surrounding the U.S. fiscal cliff, the IPOX Strategies surpassed the benchmarks on momentum, strong earnings and corporate actions. The IPOX Global 50 (IPGL50) closed out the week at a new 2012 high, rising +2.12% to +21.50% YTD, extending the YTD lead vs. benchmark MSCI World (MXWD) to +1044 bps. Gains in the IPOX heavyweights including U.S. social networker USD 60.7bn Facebook (FB), refiner USD 32.8bn Phillips 66 (PSX), U.S. car manufacturer and S&P 500 inclusion candidate General Motors (GM) or Singapore-traded USD 11.14bn Global Logistic Properties (GLP) continued to fuel the positive momentum. IPOX heavyweight U.S. discount retailer P/E-backed Dollar General (DG) rose to close at USD 50.00 on massive volume on its inclusion into the S&P 500 (SPX). The stock went public in 11/09 at USD 21.00. Amongst the red-hot Malaysian IPOX Global members, big losses in 11/10 IPO Petronas Chemicals (PCHEM MK: -4.03%) were met by a surge in 7/12 IPO IHH Healthcare (IHH MK: +9.09%) after concerted pension fund buying. In the IPOX Regional Strategies, only the IPOX Europe (IXTE, IPXUJPEU) lagged on a big drop in Financial Bankia (BKIA SM: -29.22%). IPOX U.S. (IPXO, IPXT) reached All-Time Highs, while the IPOX Asia-Pacific (IPTA) is trades just shy off its 11/07 high. We note further relative strength in the mid-cap-heavy IPOX China 20 (CNI), which rose to +12.02% YTD, +511 bps. YTD ahead of the HSCEI Enterprise Index (HSCEI). Fresh highs in 7/10 IPO Sunac China Holdings (1918 HK: +4.36%), 11/09 IPO Longfor Properties (960 HK: +5.69%), China Minsheng (1988 HK: +2.15%) or hypermarket operator 7/11 IPO Sun Art Retail Group (6808 HK: +5.65%) are driven momentum. Social networker YY.com (YY), the 2nd IPO of a Chinese company in the U.S. YTD, surged +25.18% during last week's trading.
· IPOX Strategies Comparative Returns YTD 2012:
|Ticker (BBG/Reuters)||Week||Q3 12||YTD 12|
|IPOX Global 50 (IPGL50) (USD)||+2.12%||+7.31%||+21.50%|
|MSCI World (MXWD)||+0.85%||+6.24%||+11.06%|
|IPOX U.S. 100 (IPXO)||+2.88%||+7.09%||+27.17%|
|IPOX U.S. 30 (IPXT)||+3.14%||+5.39%||+26.77%|
|S&P 500 (SPX)||+0.50%||+5.76%||+12.61%|
|IPOX Europe50 (IPXUJPEU) (EUR)||+0.05%||+11.75%||+5.00%|
|IPOX Europe30 (IXTE) (EUR)||-0.25%||+11.76%||-0.35%|
|STOXX 50 (SX5P) (EUR)||+0.67%||+5.76%||+7.69%|
|IPOX Asia-Pacific 30 (IPTA)||+1.29%||+6.82%||+27.64%|
|MSCI Asia-Pacific (MXPC)||+1.11%||+2.56%||+6.72%|
|IPOX China 20||+1.55%||-1.96%||+12.02%|
|IPOX China Cp. (IPXUCHCP)||+1.62%||+3.18%||+13.21%|
|Hang Seng Enprs. (HSCEI)||+0.15%||+2.68%||+6.91%|
|Why choose IPOX to close the IPO/spin-off asset allocation gap?|
|§ Proven: Real-time performance over market cycles |
§ Best in Practice: Investment Management Mandates
· Significant IPOs Traded (Week: 11/26/2012):
|Future Land Development||1030 HK||1.38%|
|Tsui Wah Holdings||1314 HK||12.33%|
5 significant non-REIT IPOs listed last week, with the average (median) IPO gaining +7.14% (+5.25%). The largest deal belonged to the USDbn 1.7 listing of Russia MegaFon (MFON LI: +5.25%). The solid showing of H.K.'s real estate developer Future Land Development (1030 HK: +1.38%) and restaurant chain Tsui Wah Holdings (1314 HK: +12.33%) confirms the pick-up in H.K. IPO sentiment ahead of the PICC Group (1339 HK) IPO.
· Upcoming global IPOs (Week: 12/03/2012):
|Zhengzhou Coal Mining||564 HK||12/5||CITIC, DBCAP|
|PICC Group||1339 HK||12/7||All Major|
Focus remains on China-linked IPOs with the Hong Stock Exchange as the preferred listing venue. Insurer PICC Group (1339 HK), set for its trading debut on Thursday, has priced its IPO at HKD 3.48, surprisingly near the low end of the HDK 3.42 - 4.03 range, raising USDbn 3.1. The IPO values the firm at 19.1 times earnings for the 12 months through June 30, vs. 10.6 and 34.6 times for incumbents PICC Property & Casualty (2328 HK) and China Life (2628 HK), respectively. Zhengzhou Coal Mining Machinery (564 HK) is using the PICC "window of opportunity" and has priced its H-share IPO at the bottom of the HDK 10.38-12.28 range, raising HKDbn 2.72 for 13.64% of the company. Ahead of the H.K. IPO, its A-Shares (601717 CH) hit an all-time post-IPO low last week.
Key IPOX Strategies continue big outperformance: IPOX Global closes at highest level Year-To-Date.
IPOX U.S. leads anew, finishes at All-Time High. IPOX China surges past benchmarks.
Solid initial pricing action in key global IPOs.