Investors have been warned to approach upcoming IPOs with a healthy degree of scepticism as private-equity-owned businesses return to the market at record...

Investors have been warned to approach upcoming IPOs with a healthy degree of scepticism as private-equity-owned businesses return to the market at record speeds and prices. More than $6 billion of listings are scheduled for the next three months, in what could make 2013 one of the best years for IPOs in a decade. Pitched at 21 times 2012-13 operating earnings, OzForex's $480 million float next Friday will rank among the most expensive IPOs in Australian history. Other companies currently in IPO talks include Dick Smith, PEP's Spotless Group and Nine Entertainment. Clearly private equity has dressed up assets at times and they don't fulfil all their promises on listing, says Ausbil Dexia CEO Paul Xiradis. The IPO market was effectively shut for three years following the disastrous float of department store Myer in 2009, where investors are still down 35% to date. (VIEW LINK)