(Bloomberg) -- BlackRock Inc. Chief Executive Officer Larry Fink urged caution on the ebullient environment for initial public offerings.
Fink said some IPOs are being priced at levels that are ultimately “unsustainable.” He didn't mention any companies.
“The question is: Is the market pricing in too large of a forward growth rate for these companies?” Fink said Friday at a virtual fintech event. “There are going to be many accidents.”
Read more: Public Markets Mint IPO Gold With ‘Massive' Valuation Premiums
The public-offering fervor was on full display this week when DoorDash Inc. and Airbnb Inc. both soared after their IPOs. Home-rental company Airbnb more than doubled in its trading debut, rocketing to a valuation of more than $100 billion before the shares retreated Friday. DoorDash shares pushed its total value above $55 billion, compared with its last private-funding round valuation of $16 billion.
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