|NYSE Group on Oct. 9 launched two new indexes: the NYSE IPOX Composite Index (IPO.ID) and the NYSE IPOX U.S. Index (IPY.ID). The indexes provide investors with transparent and systematic exposure to recent initial public offerings and spin-offs listed on the NYSE. Based on a modified market capitalization-weighted methodology measuring the average performance of domestic and international new issues, the NYSE IPO indexes employ unbiased entrance and exit rules based on the index methodology designed by IPOX Schuster LLC. This rules-based methodology permits index constituents to enter the index after six trading days and exit after 1,000 trading days, resulting in a benchmark of growth companies that meet the NYSE’s stringent listing standards.
In 2006, brand leaders meeting the NYSE’s listing requirements such as MasterCard Inc. (MA), Burger King Holdings Inc. (BKC), J. Crew Group Inc. (JCG), Qimonda AG (QI), Ameriprise Financial Inc. (AMP) and Morton's Restaurant Group Inc. (MRT) made public market debuts on the NYSE. Through Oct. 9, total IPOs listed on the NYSE represented a market capitalization of more than $100 billion.
“We are very pleased to introduce two new indexes that allow investors to track the performance of newly listed companies as they begin trading on the Exchange,” said NYSE Group President and Co-COO Cathy Kinney. “We created these indexes to serve as benchmarks that satisfy investors’ appetite for enhanced information products and to provide investors with unique insight into this specific segment of the NYSE’s $22.6 trillion family of listed companies.”
The NYSE IPOX Composite Index, as of Sept. 29, 2006, tracks 161 IPOs with a market cap of more than $500 billion. This includes U.S. common stocks and ADRs listed on the NYSE in connection with an IPO or spin-off on the Exchange. The NYSE IPOX U.S. includes only U.S.-based common stocks, excluding REITs, limited partnerships and other similar securities. As of Sept. 29, 2006, the NYSE IPOX U.S. tracks 142 IPOs with a market cap of $324 billion.
Using the same unbiased methodology, both indexes use a maximum weighting of 10 percent for the largest constituents and measure the average performance of domestic and foreign new listings. Index components are dynamically reconstituted to accurately reflect overall IPO and spin-off activity on the Exchange. The base date for both indexes is Aug. 31, 2006.
For additional information on the indexes and their components, please visit Index Services.
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