International IPO Index: The International IPO Index tumbled -5.5% this week amid worrying economic data out of China, while the MSCI ACWI ex-US ETF slipped -0.7%. Toronto-listed companies took the top and bottom spot, as insurance provider Definity Financial was the biggest winner, up +6.5%, and payments processor Nuvei fell a dramatic -46.2% to take the bottom spot after disappointing quarterly results and guidance.
Big Development: Shanghai welcomed the $3.0 billion IPO of Hua Hong Semiconductor this week, the second largest global IPO of 2023 so far. The company finished the week down -2%. In other China IPO news, regulators are asking lawyers to tone down China-specific risk disclosures, cracking down on corruption at pre-IPO pharmaceutical firms, and raising the bar for small companies and unprofitable tech firms to list.
Latest Listings: The flow of China A-share IPOs continued this week with four new listings. South Korean fabless flash storage firm Fadu Technology ($150mm) stumbled -7% despite pricing at the high end.
The Week Ahead: Two Indian IPOs are set to begin trading, pharmaceutical ingredients maker Concord Biotech ($180mm) and small business lender SBFC Finance ($120mm).
The Pipeline: More prospective Indian issuers moved towards IPOs this week, including India Shelter Finance and Meesho. In Europe, CVC Capital Partners reportedly started work on potential listings for DKV Mobility and Douglas, and Dutch grocery giant Ahold Delihaze stated it is weighing an IPO of its e-commerce site Bol.com. Leading UAE grocery chain LuLu Group International is seeking to raise nearly $3 billion in pre-IPO funding. Leading Chinese home appliance company Midea Group reportedly chose banks for a Hong Kong IPO that could list next year.
Thanks for reading,
-Matt Kennedy, Senior Strategist
-Angelo Bochanis, Data Analyst
|
Biggest price changes through
Aug 11th
in the
Renaissance International IPO Index
|
||
|---|---|---|
| Top 5 | ||
| Definity Financial | DFY.CN | 6.5% |
| Var Energi | VAR.NO | 4.8% |
| GQG Partners | GQG.AU | 4.0% |
| Avia Avian | AVIA.IJ | 3.3% |
| Dr. Martens | DOCS.LN | 3.1% |
| Bottom 5 | ||
| Nuvei | NVEI.CN | -46.2% |
| GoTo Gojek Tokopedia | GOTO.IJ | -15.7% |
| Shanghai MicroPort MedBot Group | 2252.HK | -12.1% |
| Hygeia Healthcare | 6078.HK | -11.3% |
| Zhejiang Leapmotor Technology | 9863.HK | -11.3% |
| Sectors | ||
| Energy | 4.8% | |
| Financials | 0.4% | |
| Utilities | -1.4% | |
| Materials | -1.9% | |
| Consumer Staples | -2.8% | |
| Real Estate | -3.9% | |
| Consumer Discretionary | -4.7% | |
| Industrials | -5.8% | |
| Health Care | -7.4% | |
| Technology | -8.9% | |
Renaissance International IPO ETF (NYSE symbol: IPOS) tracks the Renaissance International IPO Index
The Renaissance International IPO Index returned -5.5% last week vs. -0.7% for the iShares MSCI ACWI ex U.S. ETF.
