Firmus scraps ASX float after investors raised concerns

Australia data centre company Firmus has scrapped its plans for a blockbuster float on the Australian Stock Exchange (ASX).

The Singapore-headquartered company confirmed it has withdrawn its application to list on the ASX – sensationally pulling the plug on a proposed $43.7 billion initial public offering (IPO), which was set to be Australia’s biggest listing in two decades.

Firmus cited “recent market volatility and prevailing market conditions” for its decision in a statement shared to the media on Friday.

“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,” the company said. 

“The board therefore concluded that proceeding with the offer was not in the best interests of the company and its shareholders.

“Firmus will now pursue capital from the private markets and consider alternative public and private market options. We will provide additional information to shareholders as those options progress.”

Had Firmus proceeded with its planned listing on October 23, it would have been the second-biggest in Australia’s history behind Telstra.

Within a few days, the company pivoted from saying the interest from prospective investors was far greater than the size of its listing to scrambling to stop the float from taking on water, before cancelling the IPO altogether.

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Firmus was founded in 2019 by Oliver Curtis – the husband of Sydney publicist Roxy Jacenko, and a previously convicted insider trader – his cousin Tim Rosenfield, and former brother-in-law Jonathan Levee.

Despite his criminal record, Curtis was given the green-light to run Firmus as a publicly-listed company in March this year.

After initial excitement fizzled over the IPO, analysts pointed to a series of potential red flags for investors.

Firmus has about $US30 billion in debt – roughly as much as the $43.7 billion valuation it aspires to.