Pulling an IPO is one of the most demoralising experiences in investment banking, involving years of pitch work, months of preparation, and relentless coordination with lawyers, investors, and underwriters. When the deal finally launches, weak demand can trigger a rapid unraveling: orders trickle in, then vanish, leaving bankers to deliver the humiliating news that the offering has failed. This was vividly recalled by Craig Coben after reading Bloomberg’s account of the collapsed $5.5bn Australian IPO of Firmus Grid, which had aimed for a $30bn valuation backed by Nvidia and later Meta.
Despite initial investor tolerance, the revised valuation sparked a withdrawal of orders, leading to postponement and public failure. The episode adds to a growing list of high-profile IPO withdrawals, including Bamboo Insurance, Holtec, and Oura in the US. While market downturns—like Goldman Sachs’ 1998 IPO postponement during the Asian financial crisis—can justify such outcomes, more often the failure stems from a valuation mismatch between company ambitions and investor appetite.
Processes like 'testing the waters' are designed to prevent this, but competitive pressure or client reluctance to heed feedback can undermine them. For bankers, watching the order book melt away is a helpless, sickening experience—an occupational hazard that offers little consolation in the moment.
Source: Financial Times Companies · Summarized by HeadlinesBriefing