Last Week In Global IPOs: IPOX Surges, AAPL Dominance Felt As It Crashes 2 Recent U.S. IPOs

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Includes: AAPL, ADNC, AMADF, GLCNF, GM, PM, PSX, RAX, TDC
by: Josef Schuster

SUMMARY:

The IPOX Strategies focused on Developed Markets (IPOX U.S. IPOX Europe, IPOX Asia-Pacific) extended gains for another week. Behemoth Apple (NASDAQ:AAPL) cracks two recent U.S. IPOs. Recent key Malaysian IPOs decline. Japan Airlines (9201 JP) prices IPO at the top of the indicative range.

HIGHLIGHTS:

IPOX Strategies focusing on developed markets rally big, continue to record relative gains as some beaten down IPOX heavyweights gain momentum, IPOX Emerging Markets flat:Amid relative weakness in over weighted China-linked exposure, the IPOX Global 50 (IPGL50), rose just +1.67% to +14.86% YTD, lagging benchmark MSCI World (MXWD) by +86 bps to +458 bps. YTD. However, across the IPOX universe, IPOX U.S. (IPXO, IPXT), IPOX Europe (IXTE, IPXUJPEU) and IPOX Asia-Pacific (IPTA) recorded big relative and absolute gains. For example, within the IPOX U.S. universe (IPXO, IPXT), the IPOX U.S. 100 (ETF: FPX) continued to trade as one of the best performing U.S. equity benchmarks, gaining +3.66% to +20.55% YTD, +91 bps. more than benchmark S&P 500 (SPX). Select IPOX U.S. heavyweights contributed most to the rally, including beaten-down car maker General Motors (GM: +9.46%), Buffett-backed refiner Phillips 66 (PSX:+5.38%) and takeover candidates Teradata (TDC: +5.00%) and Rackspace Hosting (RAX: +7.45%). At the same time, the narrower and large-cap centric IPOX U.S. 30 (IPXT) recorded strong relative gains, adding +76 bps. vs. the S&P 500 (SPX). Philip Morris International (PM: -0.53%), excluded from IPOX in June, continued to recede. Apple's monopolistic-like dominance was felt within the IPOX U.S. small-cap universe as Internet radio provider 6/11 IPO Pandora (P: -12.68%) and 5/12 IPO chip-maker Audience (ADNC: -61.82%) crashed on fears APPL would either launch competing services or reduce supply relationships. The IPOX Europe universe (IXTE, IPXUJPEU) recorded another week of big relative gains, with the broad IPOX Europe 50 (IPXUJPEU: +3.78%) beating benchmark Stoxx 50 (SX5P: +1.66%) anew. Losses in miner IPOX member Glencore (OTCPK:GLCNF LN: -1.82%) were mitigated by a big week in Specialty IT Spanish travel reservation systems operator Amadeus IT Holdings (OTCPK:AMADF SM: +2.08%) closing in on a fresh all- time high. Across the Developed Asia-Pacific universe, the IPOX Asia-Pacific 30 (IPTA) extended the relative gain with the index spread vs. benchmark MSCI Asia-Pacific (MXPC) rising by another +79 bps. to a massive +1411 bps. YTD. Continued Weakness across high-beta H.K. traded Wynn Macau (1128 HK: -3.26%) and Japan-traded gamer Nexon (3659 JP: -5.76%) were met with big upside moves in embattled Tokyo-traded insurer Dai-Ichi Life (8750 JP: +10.66%) or Hong Kong Insurer AIA Group (1299 HK: +5.44%). While HK-traded IPOX member Prada (1913 HK: +2.76%) rose to a new post-IPO high, Japan's snack food maker Calbee (2229 JP: -2.75%) fell on weakness in global consumer staples. In IPOX Emerging Markets, we note declines in the recent key Malaysia privatization IPOs, including palm oil producer USD 5.6bn and 6/12 IPO Felda Global Ventures (FBG MK: -4.60%) and 07/12 IPO hospital operator USD 8.1bn IHH Healthcare (IHH MK: -2.81%), underlying once more the malaise in emerging markets IPOs. After recording a multi-year low during the week, mainland China markets rose with the Shanghai Composite (SHCOMP: +3.92% to -3.26% YTD) bouncing strongly. China-linked IPOX exposure (CNI) underperformed.

IPOX Long-only Strategy Returns YTD 2012:

Ticker (BBG/Reuters) Week Q2 12 YTD 12
IPOX Global 50 (IPGL50) (USD) +1.67% -8.13% +14.86%
MSCI World (MXWD) +2.53% -6.35% +10.28%
IPOX U.S. 100 (IPXO +3.66% -5.23% +20.55%
IPOX U.S. 30 (IPXT) +3.51% -3.67% +19.63%
S&P 500 (SPX) +2.75% -3.29% +14.34%
IPOX Europe50 (IPXUJPEU) (EUR) +3.78% -10.75% +4.96%
IPOX Europe30 (IXTE) (EUR) +3.56% -12.33% +1.10%
STOXX 50 (SX5P) (EUR) +1.66% -3.16% +7.64%
IPOX Asia-Pacific 30 (IPTA) +1.76% -5.69% +18.06%
MSCI Asia-Pacific (MXPC) +0.97% -6.89% +3.95%
IPOX China 20 +0.01% -8.97% -5.91%
Hang Seng Enprs. (HSCEI) +1.59% -10.12% -5.12%
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Why choose IPOX to close the IPO/spin-off asset allocation gap?
§ Proven: Real-time performance over market cycles

§ Scalable and Stable: Clearly defined Philosophy

§ Patented: Index Technology

§ Best in Practice: Support and Research

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Most significant IPOs traded (Week 09/3/12):

Company Ticker Return / IPO (%)
No significant IPOs priced and traded
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No significant accessible common stock IPO priced and commenced traded during the last week.

Japan Airlines (9201 JP) set to price on top of range:

Company Code Country Lead
No significant IPOs expected to priced and trade
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Ahead of a busier calendar during the following week, no significant global IPOs are lined up. Amid strong demand, Japan Airlines (9201 JP) finished book-building for its IPO with the stock set to price at the top of the indicative range. The stock is expected to start trading on 9/19/12. "Endlich": Talanx AG, Germany's third biggest insurer, plans a EUR 700m IPO by the end of September, making it the first significant German IPO since well-performing IPOX members Brenntag (BNR GY) and Kabel Deutschland (KD8 GY). Spain's Banco Santander SA (SAN SM) seeks to raise around USD 4bn by listing between 25-30% of its Mexican unit (BSMX US) on the NYSE as soon as next week. Despite its cheap valuation, investors in IPOX member Santander unit Banco Santander Brazil (BSBR US: +6.20%) are facing a -34.28% loss if bought on its 10/09 IPO.

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.