The US market for new listings has been red-hot, with Larry Fink, chief executive of BlackRock, the world’s largest asset manager, predicting the IPO market as “unsustainable” excessive IPO pricing and a lot of “accidents” ahead.
He warned investors to be cautious in the face of the current hot environment, with some ipos priced at ultimately ‘unsustainable’ levels and warning of a lot of potential accidents ahead. He questioned whether the market was pricing in too much forward growth for these companies. It did not identify the company.
Companies listed in the U.S. have raised more than $140 billion so far this year, surpassing the previous record of $107 billion raised in 1999. Shares in DoorDash and Airbnb soared on their debut last week, with the latter more than doubling on its first day of trading and being hailed as the hottest US ipo of the year.
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