Business · Markets · 2 hrs ago
Firmus cancels planned ASX listing after its offer price is cut
Firmus Technologies, an Australian technology company, planned to sell shares to the public through a listing on the Australian Securities Exchange.
The offering was presented as a rare chance for local investors to buy into a technology company during the artificial intelligence boom.
Firmus's brokers said early interest was strong and that existing investors would take more than half the shares on offer.
But the proposed price fell from $11 to $9 and then $8.25 as institutional interest weakened, and the listing was cancelled.
The cancellation disappointed founders and existing investors who had expected to profit from a listing at the original price, while the brokers faced possible reputational damage and lost fees.
Investors who did not buy shares may have avoided the risk of paying into an offering that was later abandoned.
Firmus Technologies cancelled its planned initial public offering on the Australian Securities Exchange after its offer price was cut.
The price fell from $11 to $9 and then to $8.25 as institutional enthusiasm weakened.
A price as low as $6 was considered, according to the Australian Financial Review.
The planned listing had been promoted as the biggest on the ASX in 30 years.
Firmus backer David Paradice said there was a gap between what underwriters had said about demand and what eventuated.
- Who
- Firmus Technologies, an artificial intelligence company.
- What
- It cancelled its planned ASX initial public offering after cutting its offer price.
- When
- The cancellation was reported on Thursday; the exact date is not stated.
- Where
- The Australian Securities Exchange in Australia.
- Why
- Institutional enthusiasm weakened and the offer price was reduced. The sources do not state an official reason for the cancellation.
This story does not have two clearly opposing sides.
We were told there were massive bids coming out of America, which clearly never eventuated. There was a big difference between what the underwriters were saying and the outcome.
Firmus was preparing to launch its planned ASX listing.
News emerged that the offer price had been reduced from $11 to $9 and then to $8.25.
Bloomberg News reported that the IPO had been cancelled, and other news organisations confirmed it.
- Initial offer price
- $11
- Reduced offer prices
- $9, then $8.25
- Price considered
- As low as $6, according to the Australian Financial Review
- Planned listing
- Biggest ASX IPO in 30 years, according to the article
- Firmus backer
- David Paradice, managing director of Paradice Investment Management
Sources
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