Volkswagen made headlines this week after officially announcing it will list its sports car brand Porsche in Frankfurt. While we don’t yet know the offering terms, its estimated deal size of about $10 billion would make it Europe’s largest IPO in over a decade, and one of the largest global IPOs of 2022. The listing should take place in late September or early October.
Mainland China drove IPO activity this week. Seven China A-shares priced IPOs, raising $2.2 billion, led by Shenzhen Hello Tech Energy’s $844 million deal. Another seven China A-shares started trading, averaging an 18% first-day pop.
India’s Tamilnad Mercantile Bank is expected to price and list its IPO next week in Mumbai. The deal will only be India’s second sizable IPO of the third quarter, though the country’s IPO pipeline has shown some signs of life in recent weeks.
Hong Kong issuers continue to funnel into the IPO pipeline, signaling a pick-up in activity in the fall. After a minor delay, battery maker CALB’s IPO is back on, as both it and China Aviation Lithium Battery were approved by the HKEx to raise about $2 billion each.
The Renaissance International IPO Index rose +1.6% last week, compared to +2.6% for the MSCI ACWI ex US ETF. The week’s winner was UK fintech Wise with a +11.5% gain, while the loser was Oslo-listed oil and gas firm Var Energi, down -9.7%.
Take care,
-Matt Kennedy, Senior Strategist
-Lily McGonagle, Data Analyst
|
Biggest price changes through
Sep 9th
in the
Renaissance International IPO Index
|
||
|---|---|---|
| Top 5 | ||
| Wise (TransferWise) | WISE.LN | 11.5% |
| Hygeia Healthcare | 6078.HK | 10.9% |
| Poly Property Development | 6049.HK | 10.4% |
| JL Mag Rare-Earth | 6680.HK | 10.3% |
| AutoStore Holdings | AUTO.NO | 10.2% |
| Bottom 5 | ||
| Var Energi | VAR.NO | -9.7% |
| Bridgepoint Advisers | BPT.LN | -6.5% |
| Converge ICT Solutions | CNVRG.PM | -4.4% |
| Budweiser Brewing Company APAC | 1876.HK | -4.0% |
| Oxford Nanopore Technologies | ONT.LN | -4.0% |
| Sectors | ||
| Industrials | 5.3% | |
| Technology | 4.1% | |
| Utilities | 4.1% | |
| Materials | 3.8% | |
| Real Estate | 3.8% | |
| Consumer Discretionary | 2.4% | |
| Financials | 2.3% | |
| Communication Services | 0.8% | |
| Health Care | 0.3% | |
| Consumer Staples | -1.4% | |
| Energy | -9.7% | |
Renaissance International IPO ETF (NYSE symbol: IPOS) tracks the Renaissance International IPO Index
The Renaissance International IPO Index returned 1.6% last week vs. 2.6% for the iShares MSCI ACWI ex U.S. ETF.
