ASIC investigating failed $44b Firmus float over broker conduct
The corporate watchdog is probing whether brokers misled investors about demand for the collapsed share float.
ASIC has opened inquiries into the collapse of Firmus's $44 billion sharemarket float. Concerns have been raised about how brokers represented investor interest to prospective buyers.
The neocloud operator pulled the float after Brisbane-based broker Morgans told clients demand was oversubscribed at the proposed $11 per share price. Morgans then downgraded the target and shelved the offer.
ASIC chair Sarah Court told a Senate hearing the regulator is examining whether lead managers had a reasonable basis for their claims about demand. The watchdog is also investigating potential conflicts of interest involving Morgans, which reportedly held a significant stake in Firmus.
A 2018 ASIC report found that overstating investor demand could amount to misleading conduct under corporate law.
- $44 billion
- IPO valuation target
- $11 per share
- Proposed share price
- Morgans
- Lead broker
Why it mattersBrokers caught misleading investors about demand face potential enforcement action. This sets a precedent for how investment banks conduct IPOs.
AustraliaAustralian institutional investors and the broader market rely on accurate information during float processes; tougher scrutiny of broker conduct protects sharemarket confidence.
Corroborated bysmh.com.au·innovationaus.com
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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