Summary
The IPOX Strategy Indexes rose last week, driven by big momentum in the IPOX U.S. IPO and spin-off universe, which continued its surge in uncharted territory. The Global value of corporate spinoffs set to increase to $400 billion in 2012, an increase of 92% from $200 billion in 2011.
Weekly Highlights
The IPOX Strategy Indexes extended the relative gains:The IPOX Strategy Indexes closed out the week with strong gains with the IPOX Global 50 ((IPGL50)) rising by +1.96% to +14.81% Year-To-Date, extending the relative YTD gain vs. benchmark MSCI World (MXWD) by +44 bps. to +501 bps. Performance within the IPOX Regional Strategy universe continued to diverge: In the United States, the IPOX U.S. IPO and spin-off ETF (TICKER: FPX surged +2.60% to +16.23% YTD and extended its relative gain vs. benchmark Russell 3000 (ETF: IWV to a massive +687 bps. YTD. Performance within the IPOX Europe universe was disappointing: The relaxation of short-selling constraints on Spanish banks put pressure on the IPOX Europe 50 (IPXUJPEU), which retreated by -0.31% to +9.06% YTD, lagging benchmark Stoxx 50 (SX5P). The IPOX Asia-Pacific 30 (IPTA) rose +2.69% to +14.88% YTD, outperforming the MSCI Asia-Pacific (MXPC) by +1.18%. Upside focus within IPOX Emerging Markets remained on the huge relative momentum in the IPOX Latin America universe (IPXULATT: +4.04% to +26.52% YTD) with the portfolio extending its relative gain vs. benchmark MSCI Latin America (MXLA) to +888 bps.
The continued big surge in the key U.S. and Latin America-domiciled IPOX heavyweights drove some of the outperformance with Columbia's Ecopetrol (EC: +8.11%) and U.S. carmaker General Motors (GM) +7.22%, amongst the top performers. Red-Hot Cloud company Rackspace Hosting (RAX) +9.11%, and Dec. 2011 IPO and hedge-fund heavy Michael Kors (KORS) +24.95%, surged on strong corporate reports. Spanish bank Bankia (BKIA SM: -12.75%) fell to a fresh post-IPO low.
Key IPOX Strategy Indexes Returns YTD 2012:
| Ticker (BBG/Reuters) | Return Week (%) | YTD 2012 (%) | Name |
| IPGLC (USD) | +2.00 | +15.10 | IPOX Global Comp |
| IPGL100 | +2.36 | +14.92 | IPOX Global 100 |
| IPGL50 | +1.96 | +14.81 | IPOX Global 50 |
| IPGL30 | +1.72 | +13.28 | IPOX Global 30 |
| IPXO | +2.60 | +16.00 | IPOX U.S. 100 |
| IPXT | +2.16 | +13.31 | IPOX U.S. 30 |
| IXTE (EUR) | -0.52 | +7.31 | IPOX Europe 30 |
| IPXUJPEU (EUR) | -0.31 | +9.06 | IPOX Europe 50 |
| IPTA | +2.69 | +14.83 | IPOX Asia-Pac. 30 |
| IPXUEM | +2.62 | +18.51 | IPOX Emerging Mkts. |
| IPXUBRIC | +2.94 | +21.50 | IPOX BRIC 25 |
| IPXUCHCP | +2.30 | +17.27 | Chin IPOX Comp. |
| CNI | +2.36 | +15.23 | China IPOX 20 |
| IPXUCAUP | +1.19 | +7.72 | China IPOX Comp. |
| IPXULATT | +4.04 | +26.52 | IPOX LatAm 20 |
| IPXK30K (KRW) | +1.63 | +2.78 | IPOX Korea 30 |
Most significant IPOs launched (week 02/13/2012)
| Company | Ticker | Return / IPO (%) |
| Adocia SAS | ADOC FP | -2.46% |
| Beijing Leadman Biochemistry | 300289 CH | 20.62% |
| Brightcove Inc | BCOV US | 30.00% |
| Bringspring Science and Tech | 300290 CH | 59.05% |
| EOS Imaging SA | EOSI FP | -8.30% |
| Hexa Byte | XABYT TU | 90.00% |
| Inside Secure SA | INSD FP | 10.84% |
| Longmaster IT | 300288 CH | 92.60% |
| Neuros Co Ltd | 126870 KS | 31.76% |
| Ozak Gayrimenkul Yatirim | OZKGY TI | -1.20% |
| Shandong Gettop Acoustic Co | 002655 CH | 39.09% |
| Shantou Dongfeng Printing Co | 601515 CH | 19.77% |
| Shenzhen Mason Technologies | 002654 CH | 38.25% |
| Universal Scientific Industrial | 601231 CH | 53.03% |
14 global IPO launched last week with the average (median) deal rising a strong +33.79% (+30.88%) based on the final offering price on the week. After much seasonally motivated delay, domestic China A Share activity picked up with 6 deals priced and each rising strongly above offering. Notable is the launch of 3 small-cap French IPOs, a potential sign of a pick-up in the European ECM deal flow.
Week Ahead (02/20/2012): Global deal flow
| Company | Code | Country | Lead Manager |
| SaraminHR Co Ltd | 143240 KS | Korea | Hyundai |
| Maxvalu Kyushu Co | 3171 JP | Japan | Nomura |
| MCExchange India | MCX IN | India | C, MSIN |
| Bazaarvoice Inc | BV US | U.S.A. | CS, DB |
| Christine Intern. | 1210 HK | China | BNP, DBSA |
| Proto Labs Inc | PRLB US | U.S.A. | Piper Jaffray |
| Sentoria Group | SNT MK | Malaysia | AMINVB |
| Xiwang Special | 1266 HK | China | CITI, JPM |
| Ceres Inc | CERE US | U.S.A. | Barclays |
| China Stationery | CSL MK | Malaysia | M&A Securities |
A diversified mix of global IPOs are in this week's global IPO line-up. Amongst the stand-outs are fast-growing Bazaarvoice (BV US), the internationally focused U.S. domiciled internet software maker and Christine International Inc. (1210 HK), the operator of a chain of European style bakeries on the Chinese mainland. Citi/JPM-led China-based steel producer Xiwang Special Steel (1266 HK) priced its $200m IPO at the low end of the range.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
