Australia’s corporate regulator is examining the collapsed $5 billion listing of Firmus, the Nvidia-backed AI data-centre company, after the deal — which would have been Australia’s second-largest IPO ever — fell apart on October 9.
ASIC Chair Sarah Court told lawmakers on October 29 that the regulator is “having a look” at the matter and is engaging with the joint lead managers on the deal: Bank of America, JPMorgan, Morgan Stanley and Morgans. Investors have claimed that an October 1 term sheet, which stated demand indications were “in excess of offer size,” was misleading.
Firmus had sought a $30.6 billion valuation at A$11 per share for its float, making the collapse one of the most dramatic IPO failures in Australian market history. At this stage there is no formal investigation — the regulator’s engagement should be framed as a preliminary look, not as charges or findings.
The episode has raised uncomfortable questions about how demand is represented in major offerings. With the bankers now fielding questions from the regulator, the fallout from the Firmus IPO collapse is far from over.
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Bhudev Bhagaliya is an experienced and senior journalist who has carved a distinct niche for himself in the world of Hindi journalism through his profound understanding and precise writing style. With over two decades of experience in the field of journalism, he has held key responsibilities at Dainik Hindustan for 12 years and at Amar Ujala for one year. Currently, he serves as the Content Editor for the Jagrook Youth News newspaper and portal, where he plays a crucial role in ensuring the quality and credibility of the news content. Bhudev Bhagaliya consistently writes about issues that help raise awareness within society and among the younger generation.