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The IPOX Week: IPOX U.S. records massive relative gains !!!

SUMMARY:

Global equities continued to slump in news driven market focused on the frictions related to European and U.S. debt. China-linked equities failed to support anew. While IPOX U.S. recorded massive relative gains, Asia is set to dominate the immediate global IPO deal flow anew.

HIGHLIGHTS:

·         Global equities closed the week with another round of massive losses, driven by the continued spiral of negative news related to European and U.S. debt. Despite potential  interest rate action, China-linked markets continued to decline. With recent U.S. IPOs plunging, accessible global IPO activity centered around micro- and small-cap IPOs in Hong Kong, Korea and Emerging Asia.
·         Weak global markets took a toll on the IPOX Global Indexes: The IPOX Global 50 (IPGL50), e.g., fell -4.17% to        -14.32% YTD, while the narrower IPOX Global 30 (IPGL30) declined -5.22% to -12.75% YTD. IPOX holding Banco Santander Brasil (BSBR US: -7.88%), closed the week at a post-IPO low on an upcoming secondary.
·         The Story of the Week belonged to the surging relative performance of the IPOX U.S. universe, indicating massively oversold conditions in the main U.S. benchmarks. The IPOX U.S. 30 Index (IPXT) rose a large +155 bps., +218 bps. and +414 bps. vs. benchmarks S&P 500 (SPX), Nasdaq-100 (NDX) and the Russell 2000 (RUT). The takeover of IPOX-heavyweight USD 10bn pharmaceutical firm Pharmasset (VRUS: +83.25%) lifted the IPOX U.S. 100 (ETF Ticker: FPX) to near the narrower IPOX U.S. 30 (IPXT) YTD. After IPOX heavyweight Motorola Mobility (MMI: +57.74% since takeover announcement), this is the second acquisition of an IPOX heavyweight at a substantial premium since August 2011.

 Other IPOX Regional Indexes traded in line to lower versus the benchmarks. With Japan-traded social networker Gree Inc. (3236 JP: -12.60%) plunging in tandem with the U.S. social networkers, the IPOX Asia-Pacific 30 (IPTA) fell -5.88% to -9.65% YTD, more than the
main benchmarks. While the IPOX Korea 30 (IPXK30K) and IPOX Latin America 30 (IPXULATT) continued to trade firm, IPOX Europe and IPOX China underperformed.
·      Groupon's (NASDAQ:GRPN) plunge and lessons for Facebook: With deal-site Groupon (GRPN: -36.04%) plunging on the week, IPOX founder Josef Schuster discusses the importance of float size, valuation and brand value linked to the impending Facebook IPO on CNBC (link):
 

Most significant IPOs launched (Week 11/21/2011):   
Company
Ticker
Return / IPO (%)
Emnet Inc
123570 KS
34.84%
Calapan Ventures Inc
H2O PM
10.00%
Grand Concord International
844 HK
52.50%
China Vehicle Components
1269 HK
25.71%
YG Entertainment Inc
122870 KS
137.35%
TA Corp Ltd
TACL SP
3.57%
Visi Media Asia Tbk PT
VIVA IJ
65.00%
·      15 micro/small-cap global IPOs launched, with the average (median) accessible (non-mainland China) IPO rising a strong +40.64% (30.28%) based on the final offering price on the week. Deals originated exclusively in (Emerging) Asia. Upside focus was on YG Entertainment Inc. (122870 KS: +137.35%), the Seoul-based artist management company. Mainland China IPOs remained robust: 7 companies commenced trading with the average (median) IPO rising +17.20% (+20.81%) based on the final offering price on the week.

Week ahead: Asia continues to dominate
Company
Code
Country
Lead Manager
Sinjiin SM Co. Ltd
138070 KS
Korea
Hanwha
Berg Earth Co Ltd
1383 JP
Japan
Nomura
HKT Trust / HKT                                                             
6823 HK 
H.K.
All Major
SFC Co Ltd
112240 KS 
Korea
Woori 
TVLogic Co Ltd
121800 KS 
Korea
Korea Invest 
Nextreaming Corp
139670 KS 
Korea
Shinhan 
·      Focus is on the burgeoning Korean IPO market with 4 micro/small-caps scheduled. In H.K., PCCW - Hong Kongs biggest phone carrier - priced its business trust offering at the bottom end of the marketed range.

Contact Us:
 
 
 
Global
Josef Schuster
+ 1 312 264 4410
 
Mary Lee
+ 1 312 264 4411
 
 
 
 
Email
josef@ipoxschuster.com  
Website
Bloomberg
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