Hong Kong is heating up while the Middle East is cooling, a reversal from last quarter.
Chinese lithium producer Tianqi Lithium started the second half off with a bang, raising $1.7 billion in the largest Hong Kong IPO in just over a year. Currently listed in Shanghai, the company begins trading in Hong Kong in the week ahead. China A-share IPOs continue to pour onto the calendar as well.
Chinese companies are spilling over into European markets: Shanghai-listed wind turbine maker Ming Yang Smart Energy priced an upsized $657 million IPO in London, set to begin trading this coming week.
Meanwhile the Middle East’s red hot IPO market has cooled somewhat as oil prices tumbled amid recession fears. Saudi Arabia’s Al Othaim family officially called off the IPO of its malls business, while Dubai business park operator Tecom Group sank -9% on its debut.
SPACs have gained traction in international markets, and this week music streaming platform Deezer listed in Paris after its merger with blank check company I2PO. The Spotify rival plummeted more than -45% its first week, mirroring a similar trend with US SPACs.
The international IPO market was flat for the week, compared to a -0.1% loss for the MSCI ACWI ex US ETF. Battered British biology company Oxford Nanopore Technologies was the week’s winner with a +20.7% gain. At the bottom of the list was Chinese toy retailer Pop Mart, off -12.5%.
Thanks for reading,
-Matt Kennedy, Senior Strategist
-Lily McGonagle, Data Analyst
Weekly International IPO Winners & Losers
| Company | Ticker | Return |
|---|---|---|
| Oxford Nanopore Technologies | ONT.LN | 20.7% |
| Allegro.eu | ALE.PW | 15.7% |
| JL Mag Rare-Earth | 6680.HK | 14.9% |
| Wise (TransferWise) | WISE.LN | 13.5% |
| JOINN Laboratories | 6127.HK | 13.5% |
| Company | Ticker | Return |
|---|---|---|
| Pop Mart | 9992.HK | -12.5% |
| GQG Partners | GQG.AU | -8.2% |
| Jiumaojiu International | 9922.HK | -6.9% |
| JS Global Lifestyle | 1691.HK | -6.1% |
| China Feihe | 6186.HK | -5.9% |
| Sector | Return |
|---|---|
| Health Care | 5.9% |
| Communication Services | 5.8% |
| Utilities | 5.4% |
| Technology | 5.2% |
| Industrials | 4.7% |
| Materials | 3.5% |
| Real Estate | -0.1% |
| Financials | -1.3% |
| Consumer Staples | -2.1% |
| Energy | -2.8% |
| Consumer Discretionary | -2.9% |
Renaissance International IPO ETF (NYSE symbol: IPOS) tracks the Renaissance International IPO Index
The Renaissance International IPO Index returned 0.0% last week vs. -0.1% for the iShares MSCI ACWI ex U.S. ETF.
