From boom to bust in five days: how Firmus’s much-hyped Australian stock market listing imploded

Furus Technologies, an Australian datacentre company, experienced a dramatic collapse in its ASX listing plans over a five-day period. Initially, the company was set to debut on the ASX with a promising $11 share price, valuing the company at $44 billion, and raising over $7 billion from investors. However, the listing plans were abruptly withdrawn on Friday, leaving investors to wonder about the long-term viability of the business.

The listing process began on Monday, with Firmus Technologies' investment bankers reporting strong investor demand, exceeding expectations. The company's initial public offering (IPO) was anticipated to generate significant financial gains for early investors, including Oliver Curtis, Tim Rosenfield, and Jonathan Levee. However, behind the scenes, there were concerns about the sale of shares by large investors like Blackstone, Jane Street, and Coatue immediately after the listing.

As the bookbuilding process progressed, demand from Australian and US investors dwindled. Firmus Technologies approached overseas hedge funds for $150 million in liquidity, but this was a last resort. The bankers eventually lowered the offer price to $5.50, reducing the required capital from $7 billion to just over $4 billion. With the IPO on the brink of collapse, Firmus Technologies withdrew its application to list on the ASX, opting to pursue capital from private markets instead.