Australian regulator probes failed $5B Firmus IPO
What's the story
Australia's corporate regulator, the Australian Securities and Investments Commission (ASIC), is looking into the failed $5 billion initial public offering (IPO) of AI data center operator Firmus. The company's planned IPO was set to be Australia's second-largest ever but collapsed on October 9 due to insufficient investor support. ASIC Chair Sarah Court said while no formal investigation has been launched yet, they are in talks with banks involved in the share sale process.
IPO details
Firmus aimed to raise $5 billion through IPO
The NVIDIA-backed AI data center operator, Firmus, had hoped to raise $5 billion through its IPO.
The move was aimed at valuing the company at a whopping $30.6 billion, three times its worth in an August private fundraising round.
However, the ambitious plan fell through as it failed to attract enough investor interest, prompting ASIC's probe into the matter.
Probe focus
ASIC in talks with banks involved in share sale process
Court said, "I think it's fair to say that we are having a look at the broad range of issues that have been reported in the media, including engaging with the joint lead managers."
The joint lead managers for this deal were Bank of America, JPMorgan, Morgan Stanley, and brokerage Morgans.
While Morgan Stanley and JPMorgan have declined to comment on ASIC's inquiries so far, Bank of America and Morgans are yet to respond, Reuters reported.