From the Guardian · · 2m
Firmus's ASX listing collapses in five days
The datacentre company's $44bn float imploded as investor demand evaporated, sparing retail investors from a potential disaster.
In brief
The datacentre company's $44bn float imploded as investor demand evaporated, sparing retail investors from a potential disaster. Firmus Technologies withdrew its ASX listing after investor demand collapsed within days, with the share price halving from eleven dollars to five fifty dollars. Originally reported by the…
Firmus promised the future
On Monday, Firmus Technologies prepared to list on the ASX with AI-enhanced liquid-cooled datacentres packed with Nvidia microchips, promising investors a stake in the future.
The valuation was eye-watering
Firmus was set to price shares at eleven dollars each, raising more than seven billion dollars and valuing the company at forty four billion dollars, about the same size as Woolworths.
The startup had almost no operations
Firmus had just two small operational sites but was valued at forty four billion dollars, up from less than two billion dollars in twenty twenty five.
Bankers signalled overwhelming demand
Investment bankers Morgans, Morgan Stanley, JP Morgan and Bank of America told investors that indications were well in excess of the offer size on Monday.
“At the fixed price, indications are well in excess of the offer size.”
Behind the scenes, trouble emerged
By Tuesday, investment houses discovered that over fifty percent of shares, including those held by Blackstone, Jane Street and Coatue, could be sold immediately after listing.
Retail investors faced a trap
Rob Talevski, chief executive of Webull Securities Australia, warned that retail investors could become the liquidity exit strategy for early investors, repeating losses seen in DigiCo Infrastructure.
Demand collapsed by Wednesday
By Wednesday, bankers were not getting expected demand from Australian or US investors and desperately sought one hundred fifty million US dollars from overseas hedge funds.
The price halved in two days
By Thursday, the share price had dropped from eleven dollars to five fifty dollars, wiping billions from Firmus's valuation as the bookbuild descended into chaos.
“Once it starts to go off the rails, it's a slippery slope down, and the momentum built against it.”
Firmus withdrew the listing
On Friday, Firmus withdrew its ASX listing application, citing recent market volatility and prevailing market conditions, and said it would pursue capital from private markets instead.
Retail investors escaped disaster
Fund managers said retail investors sidestepped a disaster, with one stating the listing should never have happened and would have ended in tears if it had proceeded.
“If it got on to the ASX it was going to end in tears.”
The takeaway
Firmus Technologies withdrew its ASX listing after investor demand collapsed within days, with the share price halving from eleven dollars to five fifty dollars.
