ASIC Questions Brokers Over Failed $44 Billion Firmus Float and Investor Demand Claims

ASIC is making inquiries into whether brokers managing Firmus Technologies' aborted $44 billion float overstated investor demand or held conflicts of interest, the regulator's chair Sarah Court said. Startup Daily reported that no formal investigation has been opened into the collapsed listing.

Court Details ASIC's Inquiry Into Firmus Brokers

Court told Liberal senator Dave Sharma during a Senate estimates hearing in Canberra on Thursday that ASIC was examining the "very significant" IPO failure. Sharma had previously written to Court raising institutional investors' concerns about the conduct of the lead managers, which included Brisbane-based broker Morgans.

Morgans told clients in an email that demand was oversubscribed ahead of the proposed $11 a share offering, before its target price was downgraded and shelved altogether. "We would certainly be looking at, as part of these inquiries, at that kind of correspondence and also the broader context," Court said. She added that a report makes clear lead managers must have a reasonable basis for representations about investor demand.

ASIC found in a 2018 report that overstating investor demand could amount to misleading and deceptive conduct. Court also confirmed ASIC was investigating how Morgans managed potential conflicts of interest, given it reportedly held a significant stake in Firmus. She said the float not proceeding should not necessarily be read as a market failure or a sign of wrongdoing.

Morgan Stanley was one of the joint lead managers on the float alongside Morgans, Bank of America and JP Morgan. In a written response to Sharma dated October 28, Court said ASIC was aware of questions about whether information given to investors during the bookbuild was "accurate, appropriately qualified and supported by a reasonable basis at the time it was provided".

Firmus's Fundraising Record Before the Float

According to akta.pro company records, Firmus targeted an ASX listing in July 2026 with a primary raise of approximately A$2 billion to fund AI Factory build-out and sovereign customer expansion. The company raised US$505 million in equity from Coatue in April 2026 at a US$5.5 billion valuation. Firmus designs, builds and operates modular AI Factory data centres using NVIDIA GPUs for hyperscale, sovereign and government customers across Asia-Pacific, and was founded in 2019.

How the Firmus Listing Unravelled

On October 20, 2026, Bloomberg reported that ASIC was gathering information about Firmus Grid Ltd.'s failed IPO, though no formal investigation had opened. On October 21, 2026, Bloomberg reported that Aware Super chief investment officer Simon Warner said the failed listing showed investors becoming more discerning about AI infrastructure opportunities. On October 28, 2026, MarketScreener reported that ASIC was making targeted inquiries into joint lead managers, citing concerns about information accuracy during book-building.

Maas Group's Disclosure Under Review

Court said there appeared to be no issues with Firmus investor Maas Group's compliance with continuous disclosure obligations. Maas, a construction services provider holding a significant stake in Firmus, went into a trading halt after its shares fell 20% following news the float was cancelled. "Based on the information currently available, the market appears to have been informed of relevant developments through Maas Group's public disclosures and responses to ASX enquiries," Court said in her letter.