Last Week In Global IPOs: Key IPOX Strategies Extend Record Run

by: Josef Schuster

IPOX Weekly Summary

  • IPOX Strategies build on positive momentum.
  • Trading volume in IPOX-linked ETF (NYSEARCA:FPX) surges.
  • Slew of Indonesian IPOs set to commence trading.
  • IPOX U.S. and IPOX Asia-Pacific at all-time highs.

IPOX Returns, Notable Company Moves:

· Key IPOX Strategies kick-off the 2013 with market-beating returns: A positive outcome to U.S. fiscal talks, good Chinese economic numbers and asset allocation flows into global equities benefited the IPOX Strategies, with the IPOX Global (IPGL50) gaining a further +2.98% during the first week of 2013, +65 bps. more than benchmark MSCI World (MXWD). For another week, gains were driven by strength in the IPOX U.S. (IPXO) and IPOX Asia-Pacific (IPTA) Portfolios, which closed the week at fresh all-time highs (Chart 1). Individual equity positions in focus were USDbn 6.7 Singapore-traded shopping mall operator and 11/09 IPO CapitaMalls Asia (CMA SP: +8.76%) after positive analyst comments or the Hong-Kong traded Macau casino complex including IPOX heavyweight Sands China (1928 HK: +7.95%) and Wynn Macau (1128 HK: +6.68%) after reporting strong December gaming revenue numbers. 5/12 IPO Social networker Facebook (FB: +8.00%) and 5/11 IPO global miner Glencore International (GLEN LN: +8.40%) ranked among the top performing large-caps in IPGL50.

· IPOX Strategies Comparative Returns YTD 2013:

Ticker (BBG/Reuters) Week 2012 YTD 13
IPOX Global 50 (IPGL50) (USD) 2.98 24.17 2.98
MSCI World (MXWD) 2.33 13.44 2.33
IPOX U.S. 100 (IPXO) 3.10 29.17 3.10
IPOX U.S. 30 (IPXT) 3.15 28.86 3.15
S&P 500 (SPX) 2.82 13.41 2.82
IPOX Europe 50 (IPXUJPEU) (EUR) 2.98 6.09 2.98
IPOX Europe 30 (IXTE) (EUR) 2.66 0.03 2.66
STOXX 50 (SX5P) (EUR) 2.93 8.78 2.93
IPOX Asia-Pacific 30 (IPTA) 2.65 28.77 2.65
MSCI Asia-Pacific (MXPC) 1.82 10.97 1.82
IPOX China 20 (NYSE:CNI) 3.96 19.53 3.96
IPOX China Cp. (IPXUCHCP) 4.28 18.93 4.28
Hang Seng Enprs. (HSCEI) 4.38 15.09 4.38
Click to enlarge
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

Click to enlarge

Amid relative strength in global small-caps with the Russell 2000 (RUT: +3.51%) continuing its outperformance from two weeks ago on the foregone "January Effect," respective members in the IPOX universe surged, including Australian online marketplace USDbn 1.9bn Carsales.com (CRZ AU: +9.40%), Elon Musk-backed 12/12 U.S. IPO alternative energy firm Solarcity (SCTY US: +20.96%) or hard-hit Groupon (GRPN: +8.20%) and Zynga (ZNGA: +10.55%). Notable are Friday's big gyrations in the spread relationship between U.S. equity benchmarks (SPX, NDX, RUT) with the tech-heavy NASDAQ-100 (NDX: +2.39%) underperforming. The weakness in U.S. technology is also indicated when looking at the worst performing IPOX members last week with 06/12 IPO USDbn 3.6 ServiceNow (NOW US: -3.36%) or 07/12 IPO USDbn 3.3 Palo Alto Networks (PANW: -9.85%) falling sharply. In IPOX Emerging Markets, the IPOX China 20 (CNI: +3.96%) rose anew. The big post-IPO jump in 12/12 IPO USDbn 21.8 Peoples Insurance Co. of China (1339 HK: +17.53% since IPO) bodes well for upcoming pricing activity in China-linked IPOs in Hong Kong and abroad.

· After surging +30.44% in 2012, the IPOX-linked First Trust U.S. IPO Fund (Ticker Symbol: FPX) receives record media attention, trading volume surges:

Here are links to some of the stories as published by The Wall Street Journal and etftrends.com:

http://online.wsj.com/article/SB10001424127887323984704578207620240957906.html?mod=googlenews_wsj

http://www.etftrends.com/2013/01/ipo-etf-beats-sp-500-with-30-rally-despite-facebook-flop/

· Significant IPOs Traded (Week: 01/01/2013):

Company Ticker Return/IPO
No IPOs priced and traded
Click to enlarge

· Upcoming Global IPOs (Week: 01/07/2013):

Company Code Date Lead
Pelayaran Nasional Bina Bu. BBRM IJ 01/09/13 OSK Inv. Bank
Saraswati Griya Lestari HTOL IJ 01/10/13 Valbury Asia
Bank Maspion Indonesia N/A 01/10/13 Makinta Sec.
Sarana Meditama Metropol. SAME IJ 01/11/13 Lautandhana
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Indonesia kicks of a new global IPO cycle with the launch of 4 deals. With the average (median) 2012 IPO trading on the Indonesian Stock Exchange rising +50.53% (+15.00%) from the final offering price, expect a strong debut for the deals.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.