SYDNEY – Australia’s corporate regulator said on Oct 29 that it was probing the failed US$5 billion (S$6.4 billion) initial public offering (IPO) 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 Oct 9 after failing to gain enough investors backing.
The Nvidia-backed AI data centre operator had planned to raise US$5 billion in the IPO to value the company at US$30.6 billion, triple the value achieved during a private fundraising 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 Reuters request for comment. REUTERS
