Australia’s corporate regulator, ASIC, is probing investment banks over the aborted Firmus Grid Ltd. IPO that was slated to raise about $5 billion and value the company at roughly $30 billion. ASIC chair Sarah Court said the commission is making “targeted inquiries” of the joint lead managers—Bank of America, JPMorgan Chase, Morgan Stanley and Morgans Financial—following concerns raised by Senator Dave Sharma about bullish marketing claims that suggested oversubscription. The banks declined to comment.
Court emphasized that the failed listing does not automatically imply wrongdoing, noting that robust investor scrutiny is a normal part of price discovery. The collapse rattled markets, weakening listed peers and prompting delays in other IPO plans, but ASIC will assess the information gathered before deciding on any further action.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing