Firmus considering postponing float: report

Firmus has withdrawn its application to list on the ASX, scrapping an initial public offering that would have valued the Australian data centre company at about $43.7 billion.

In a statement, the company said its board had weighed recent market volatility and prevailing market conditions. It concluded the terms on which the offer could proceed would not appropriately reflect the company’s business and long-term growth outlook, and that going ahead was not in the best interests of the company and its shareholders.

Firmus said it would now pursue capital from private markets and consider other public and private options. It will update shareholders as those options progress.

Some potential investors turned more cautious as the deal progressed, voicing concern over existing shareholders potentially flooding the market soon after the company’s debut, people familiar with the matter have said. The overhang added to questions over what some investors see as an aggressive pricing strategy, they said.