Firmus $5 billion float failure deals blow to Australia’s shrinking share market

The failure of Firmus' $5 billion IPO presents a significant blow to Australia's already constrained share market, according to investors and industry experts. The collapse highlights the market's reliance on a small number of large entities, primarily the Big Four banks and major mining companies, leaving less room for diverse investment opportunities.

Firmus withdrew its listing plans on Friday, citing market volatility and unfavorable conditions, opting instead to pursue a private fundraising round instead. This decision is the second-largest IPO for the Australian Securities Exchange (ASX) on record, trailing only Telstra Corp's $10 billion flotation in 1997. The withdrawal is likely to exacerbate the ASX's ongoing challenges, including a declining number of listed companies and a lack of fresh listings.

Investors, such as Oscar Oberg of Wilson Asset Management, expressed disappointment over the deal's collapse and the market's need for more new listings to maintain attractiveness. The ASX has experienced a steady decline in listed companies, particularly in the infrastructure sector, as they are acquired by private entities. With only 1,891 companies listed on the ASX in September 2026, down from 2,066 in 2016, the market's diversity and attractiveness have been compromised.