The Middle East drove deal flow this week with two large offerings: Saudi oil driller Arabian Drilling priced its IPO at the high end to raise $710 million, while UAE healthcare operator Burjeel Holdings priced its $300 million deal at the low end. Oil prices rebounded about 17% this week thanks to OPEC+ cutting its production target, so Middle East IPO markets should have an active end to a year with a record number of billion-dollar IPOs in the region.
In the APAC region, Japanese chip firm Socionext priced its $460 million IPO at the high end, marking Tokyo's sole offering to raise at least $100 million this year. It trades in the coming week. And amid dwindling investor enthusiasm in Hong Kong, billion-dollar Chinese battery IPO Calb traded flat on its debut, then sank -4% by the end of the week.
Coming up, a few South Korean IPOs have joined the calendar. In addition, Thai food producer Betagro announced plans to raise $450 million at the end of October, while news broke that Thai chemical manufacturer SCG Chemicals was gearing up for a 2023 IPO that could raise $3 billion.
The Renaissance International IPO Index rose 1.0% last week, compared to 1.6% for the MSCI ACWI ex US ETF. The Hong Kong Exchange produced both the week's winner, fast casual restaurant operator Jiumaojiu International (+18.8%) and its loser, contract drug maker Pharmaron Beijing (-8.9%).
Thanks for reading,
-Matt Kennedy, Senior Strategist
-Lily McGonagle, Data Analyst
Weekly International IPO Winners & Losers
| Company | Ticker | Return |
|---|---|---|
| Jiumaojiu International | 9922.HK | 18.8% |
| AutoStore Holdings | AUTO.NO | 18.4% |
| Pop Mart | 9992.HK | 6.8% |
| Zhejiang Kuaishou Information Technology | 1024.HK | 5.7% |
| Budweiser Brewing Company APAC | 1876.HK | 5.6% |
| Company | Ticker | Return |
|---|---|---|
| Pharmaron Beijing | 3759.HK | -8.9% |
| Blue Moon Group Holdings | 6993.HK | -7.4% |
| Allegro.eu | ALE.PW | -6.8% |
| Thai Life Insurance | TLI.TB | -5.6% |
| Smoore International | 6969.HK | -5.5% |
| Sector | Return |
|---|---|
| Industrials | 10.2% |
| Utilities | 3.8% |
| Consumer Discretionary | 2.9% |
| Energy | 2.8% |
| Technology | 1.0% |
| Consumer Staples | 0.6% |
| Materials | -0.5% |
| Real Estate | -1.0% |
| Financials | -1.7% |
| Health Care | -2.7% |
Renaissance International IPO ETF (NYSE symbol: IPOS) tracks the Renaissance International IPO Index
The Renaissance International IPO Index returned 1.0% last week vs. 1.6% for the iShares MSCI ACWI ex U.S. ETF.
