Australia’s corporate regulator is scrutinizing investment banks over the collapsed $44 billion public listing of artificial intelligence start-up Firmus. The probe follows a financial loss and doubt cast over multibillion-dollar chip commitments after investors balked at the float.
The Australian Securities and Investments Commission has opened targeted inquiries into the joint lead managers behind the aborted initial public offering of data centre operator Firmus. The investigation centers on whether information provided to potential investors during the marketing and bookbuild process met regulatory standards for accuracy and reasonable backing.
ASIC Investigates Bank Conduct During Capital Raising
ASIC chair Sarah Court confirmed the preliminary inquiries during a Senate estimates hearing, responding to questions raised about the conduct of the financial institutions steering the transaction. Global investment banks Morgan Stanley, JPMorgan, Bank of America, and Morgans Financial headed the underwriting and capital-raising work to value the homegrown company at nearly $44 billion.
Before the listing was pulled, those advisers had informed the market that major existing shareholders—led by Nvidia, Blackstone, and Coatue—already spoke for half of the targeted capital. Fund managers were told that demand far outpaced the stock available at the initial $11 offer price, which was later reduced in a bid to rescue the deal. One Morgans adviser even urged clients in writing to get a rattle on
to secure allocations amid claims of outsized demand.
ASIC is aware of questions raised about whether information provided to investors during the bookbuild was “accurate, appropriately qualified and supported by a reasonable basis at the time it was provided”.
Sarah Court, ASIC Chair
Court stressed at the hearing that the inquiries remain preliminary and that no formal investigation has been launched.
Financial Realities Behind the Aborted Multibillion-Dollar Float
News of the regulatory scrutiny broke alongside Firmus’s audited annual report for the 2026 financial year, filed with ASIC. The documents reveal that the company posted a $US77.3 million loss before tax while spending $US1.5 billion on construction, property costs, and equipment. The enterprise, co-founded in 2019 by Oliver Curtis, Tim Rosenfield, and Jonathan Levee, operated only two data centres and reported Australian annual revenue of just $US1,327.
The stalled public offering has left several major operational commitments in jeopardy. According to regulatory filings, Firmus faces a $US550 million pre-payment requirement due this year for its Indonesian data centre project in Batam, part of an overall $US8.3 billion commitment to develop the facility with NVIDIA. The company also faces about $US311 million in payments due by June next year for Australian developments under Project Southgate.
Director Loans Provided High Returns Before Market Skepticism
The disclosures also shed light on early financial arrangements, including director loans carrying interest rates of up to 20 per cent. Mr. Curtis and former director Michael Rosenfield had provided loans and subsequently received rights to buy nearly 500,000 shares for one cent each—rights that would have been worth a combined $20 million at a September 2025 valuation. Both loans were repaid in July 2025.
Despite backing from institutional investors such as Nvidia and Blackstone, the company faced growing market skepticism.
Following the abandonment of what was set to be the biggest public offering on the Australian stock market since Telstra, Firmus announced it will pursue capital from private markets instead.