ASIC Turns to the Bankers Behind Firmus’s Failed $5 Billion Float

The collapse of Firmus’s initial public offering has drawn the corporate regulator’s attention to the banks that ran it. Australian Securities and Investments Commission chair Sarah Court told a parliamentary hearing on Thursday 29 October that ASIC was looking at the failed float, including by engaging with its joint lead managers, Reuters reported.

What happened to the float

Nvidia-backed Firmus, an AI data centre operator, had planned to raise $5 billion in what was due to be the second-largest IPO in Australian history, at a valuation of $30.6 billion. Reuters reported that valuation was triple the figure achieved in a private fundraising round in August. The deal collapsed on 9 October after failing to win enough backing amid investor concerns about AI valuations, heavy spending and the timing of returns.

The joint lead managers were Bank of America, JPMorgan, Morgan Stanley and the broker Morgans.

What ASIC said

Ms Court said the regulator had not launched an official investigation. “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,” she told the hearing. “This was a very significant event. We understand that and we need to look at it carefully. That’s what we’re doing.”

According to Reuters, some investors have criticised as misleading a term sheet the banks sent when the deal launched on 1 October, which said “at this fixed price indications are in excess of the offer size.” Local media also reported that a Morgans broker emailed clients saying the order book was well above the deal size. Ms Court said messaging from brokers during the bookbuild would form part of the inquiry.

In a letter responding to questions from Liberal Senator Dave Sharma, seen by Reuters, Ms Court set out the regulator’s expectations: “We expect lead managers to have a reasonable basis for representations about investor demand, keep appropriate records of bookbuild and allocation decisions, manage conflicts of interest, and update investors if demand changes materially during the capital-raising process.”

Bank of America, Morgan Stanley and JPMorgan declined to comment to Reuters on the inquiries, and Morgans did not respond. No finding of wrongdoing has been made against any of the banks.

Why it matters for companies raising capital

For any business preparing to list or raise equity, the episode is a reminder that the way demand is communicated during a bookbuild is itself regulated conduct. The regulator’s four stated expectations, a reasonable basis for demand claims, proper records, managed conflicts and prompt updates when demand changes, are a useful checklist for boards to put to their own advisers.

The collapse also added to the cooling in sentiment towards AI stocks that has marked recent weeks, and raised questions about how easily the sector can keep raising money.

Sources: Reuters, via CNA (29 October 2026).