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.

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 attributed much of it to the lifting of lockdowns in China, which he deemed as unsustainable.

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Why It Matters: Amer Sports’ IPO is the latest in a series of IPOs that have failed to meet market expectations. This trend has raised concerns about the overall health of the IPO market.

The IPO market has been experiencing significant turbulence since 2021, with the valuations of numerous companies debuting on the U.S. stock market dropping by 63%. This volatility has been a cause for concern in the venture capitalist community.

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