Australia's corporate regulator probing failed $5 billion Firmus IPO

On October 29, Australia's corporate regulator, the Australian Securities and Investments Commission (ASIC), announced it would investigate the failed US$5 billion initial public offering (IPO) of AI data centre operator Firmus. The regulator had not yet initiated an official probe but had contacted the banks heading the share sale.

Firmus' IPO, initially slated to be the second-largest in Australia's history, fell through on October 9 due to insufficient investor interest. The company aimed to raise US$5 billion, valuing the firm at US$30.6 billion, three times its private fundraising round in August. Sarah Court, ASIC's chair, stated that they were examining the "broad range of issues" reported in the media, including discussions with the joint lead managers.

The IPO's lead managers were Bank of America, JPMorgan, Morgan Stanley, and brokerage Morgans. Both Morgan Stanley and JPMorgan did not comment on the ASIC inquiries, while Bank of America and Morgans had not responded to Reuters' request for comment.