The Globe and Mail reports in its Tuesday edition that with initial public offerings on a tear, investors should be worried. The Globe's Tim Kiladze writes as energy prices crashed in the second half of last year, investors took part in a classic rotation, selling resource stocks with abandon and buying shares in nearly every other sector. The typically boring consumer staples index is up 40 per cent over this period. Private company owners are taking their holdings public by selling into this demand and it only takes one big flame-out to break up the party. One trend to watch here is the proliferation of IPOs for subordinate shares -- something we have seen in both the Cara and Shopify offerings. Investors can be so hungry for non-resource stocks that they ignore this feature. Magna International shareholders had to shell out $863-million to Frank Stronach to finally wrestle control of the company away from him in 2010. Mr. Kiladze advises underwriters to be smart and take it slow. If a company wants to go public, he adds, do not go for the maximum value possible. It is much better to price a solid deal at a reasonable level, and then have the stock trade up in the market.