Australian regulator probes failed A$5 billion Firmus IPO

Australia's corporate regulator is investigating the failed A$5 billion initial public offering of AI data centre operator Firmus. The Australian Securities and Investments Commission has engaged with the banks that led the share sale, which collapsed on 9 Oct after failing to secure enough investor

SYDNEY — Australia's corporate regulator said on Thursday it was probing the failed A$5 billion initial public offering of AI data centre operator Firmus.

Australian Securities and Investments Commission Chair Sarah Court said the regulator was yet to launch an official investigation, but said it had engaged with the banks leading the share sale.

Firmus' planned IPO, due to be the second largest ever in Australia, collapsed on 9 Oct after failing to gain enough investors backing.

The Nvidia-backed AI data centre operator had planned to raise A$5 billion in the IPO to value the company at A$30.6 billion, triple the value achieved during a private fund raising round in August.

"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," Court told a hearing of Australian lawmakers. "This was a very significant event, we understand that and we need to look at it carefully. That's what we're doing."

The deal's joint lead managers were Bank of America, JPMorgan, Morgan Stanley and brokerage Morgans. Morgan Stanley and JPMorgan declined to comment on the ASIC inquiries, while Bank of America and Morgans did not immediately respond to a request for comment.