IPOS - Jim Cramer Advises Investors To Steer Clear Of Amer Sports Amid 'Hit Or Miss' IPO Market: 'The Kind Of Deals I Wish We Aren't Seeing' | Benzinga
In a recent episode of CNBC’s “Mad Money,” host Jim Cramer warned investors to stay away from the initial public offering (IPO) of Amer Sports, citing the company’s “less than ideal” balance sheet.
What Happened: Amer Sports, the parent company of renowned sports brands such as Wilson and Arc’Teryx, saw its IPO debut on Thursday, reported CNBC. Despite the company’s initial stock price of $13.40 per share, which resulted in a $6.3 billion valuation, Cramer advised against investing in it. The company had initially aimed for an $8.7 billion valuation.
Cramer highlighted Amer Sports’ substantial debt of $2.1 billion, describing its balance sheet as “less than ideal.” He also raised concerns about the company’s overreliance on the Chinese market and the potential impact of the country’s economic struggles.
"So far, this is looking like another out of favor IPO, even if its lowball price allowed the stock to get a like, I guess you could call it a decent pop," he said.
"And, I've got to tell you, Amer Sports is a great example of the kind of deals I wish we weren't seeing."
Despite acknowledging Amer Sports’ recent growth, Cramer ...