Firmus IPO collapses over investor lock-up row
Australian AI data centre startup Firmus halted its ASX IPO on October 9 after major backers refused to lock up their shares.
Firmus, an Australian artificial intelligence data centre builder, abandoned its $5 billion ASX listing after major investors rejected voluntary lock-up agreements. Escrow, a tool that stops big shareholders selling shares for 1-2 years after listing, protects new investors from a flood of selling that can crash the share price.
Nvidia, Blackstone, Coatue, and northern NSW fund Tectonic Investment Management all declined to agree. Tectonic, which had backed Firmus for five years and built a 4% stake worth $1.76 billion, refused because the company represents over 80% of its portfolio, concentrating too much risk.
The IPO unravelled in less than 48 hours. Firmus is now seeking about $4 billion in private funding and exploring a US Nasdaq listing instead.
Cofounder Oliver Curtis blamed Australian investors' appetite for risk; the real issue was that existing backers wanted freedom to exit if the ambitious expansion plans faltered.
- $5 billion
- Intended IPO size
- 4% worth $1.76 billion
- Tectonic's stake and value
- Over 80%
- Firmus share of Tectonic portfolio
Why it mattersA major Australian tech startup has abandoned plans to list locally and is heading to the US, signalling tension between local founders and cautious global investors.
AustraliaAn Australian AI company valued at billions is now likely to list overseas instead of on the ASX, potentially moving jobs and capital offshore.
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