Australia’s Firmus Technologies pulls the pin on its ASX listing
Firmus Technologies has canceled its planned initial public offering on the Australian Stock Exchange due to market volatility and unfavorable conditions. The company, which focuses on AI infrastructure, decided the offer terms did not reflect its long-term value.
Why it matters
The cancellation of a major capital raising event highlights the impact of rising bond yields and market uncertainty on the AI and data center infrastructure sector.
Artificial intelligence infrastructure firm Firmus Technologies has pulled its highly anticipated listing on the Australian Stock Exchange, which had been billed as the biggest capital raising event since Telstra in 1997.
The move follows frenzied last-minute activity in the initial public offer phase, which first pitched the shares at $11 a share ($13.57).
Australian media reported the offer price had been substantially revised downward before the company finally opted to pull the pin.
Uncertainty about the firm had emerged throughout the week as investment bankers worked on raising US$5.5 billion ($9.2b) via an initial public offer.
“Having considered recent market volatility and prevailing market conditions, the board determined that the terms on which the offer could proceed would not appropriately reflect the strength of the company’s business and long-term growth outlook,” Firmus said in a statement.
Also covering this story
2 other newsrooms covered this event. We read each version separately.
Datacentre company Firmus’s high flying valuation may be coming back down to earth ahead of expected ASX debut
Data centre company Firmus tries to save its mega share market float as interest underwhelms
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