Three non-US IPOs managed to price this past week, listing in Saudi Arabia and Hong Kong. Saudi Arabia’s largest retail pharmacy chain Nahdi Medical priced a billion-dollar IPO at the top of the range. The Middle East region now accounts for one-third of 2022 international listings, compared to just 5% in 2021. The Middle East is riding strong economic tailwinds as oil prices reach their highest level since 2014, while a sell-off in growth stocks and the Russia-Ukraine crisis delay offerings elsewhere.
On that note, it's just as notable what didn't get done this week. On Monday, Japan’s SBI Sumishin Net Bank postponed its $1.2 billion listing, which we highlighted in a client note. Later in the week, news broke that Malaysian latex glove maker Top Glove and Dalian Wanda's mall unit would delay plans for 1H22 Hong Kong listings.
Rumors continue to swirl that Life Insurance Corp of India's IPO will be pushed back, though we're still waiting on an official statement.
DiDi Global is said to have stopped its preparations for a Hong Kong IPO amid a cybersecurity probe, complicating its plan to delist from the NYSE. Meanwhile, EV maker Nio cross-listed its shares in Hong Kong (9866.HK) without an underwritten offering.
SPACs continue to seek out foreign exchanges, as New Energy One Acquisition plans a $230 million London listing and Aquila Acquisition plans an estimated $130 million Hong Kong listing. As we've noted in the US, raising funds is the easy part - finding an attractive target is the hard part.
The Renaissance International IPO Index returned -3.5% last week, compared to a -1.8% decline for the ex-US benchmark. Hong Kong growth IPOs appeared at the bottom of the list, while Spanish renewable power producer Acciona Global Renewables led the winners with a +16.6% gain.
Take care,
-Matt Kennedy, Senior Strategist
-Lily McGonagle, Data Analyst
Weekly International IPO Winners & Losers
| Company | Ticker | Return |
|---|---|---|
| Acciona Global Renewables | ANE.SM | 16.6% |
| Nuvei | NVEI.CN | 16.4% |
| Azelis Holding | AZE.BB | 15.7% |
| Allfunds | ALLFG.NA | 15.6% |
| Antin Infrastructure Partners | ANTIN.FP | 13.1% |
| Company | Ticker | Return |
|---|---|---|
| Ming Yuan Cloud | 909.HK | -27.1% |
| HUTCHMED | 13.HK | -25.1% |
| JD Logistics | 2618.HK | -21.8% |
| JD Health | 6618.HK | -19.7% |
| Sunac Services Holdings | 1516.HK | -17.2% |
| Sector | Return |
|---|---|
| Utilities | 16.6% |
| Materials | 4.5% |
| Financials | 2.6% |
| Communication Services | -0.2% |
| Technology | -1.8% |
| Industrials | -3.0% |
| Consumer Staples | -6.7% |
| Real Estate | -6.9% |
| Consumer Discretionary | -7.3% |
| Health Care | -9.3% |
Renaissance International IPO ETF (NYSE symbol: IPOS) tracks the Renaissance International IPO Index
The Renaissance International IPO Index returned -3.5% last week vs. -1.8% for the iShares MSCI ACWI ex U.S. ETF.
