Australia’s biggest sharemarket float since Telstra is in trouble, with weak investor demand threatening the planned $8 billion listing of AI infrastructure company Firmus Technologies.

Investment banks had hoped to sell shares for as much as $11 each, potentially valuing Firmus at $44 billion. But the Australian Financial Review reports they have struggled to attract buyers even at $8.25, with major Australian super funds and North American investors reportedly reluctant to participate.

The float could be scaled back, repriced or abandoned altogether. If it proceeds, the company’s valuation could fall to between $25 billion and $30 billion.

The implications extend well beyond Firmus. The ASX has struggled to attract major listings, while Australia’s technology sector is already under pressure, with its index down 34 per cent over the past year.

The disappointing demand also raises questions about investor appetite for AI infrastructure, particularly when around 95 per cent of the data centres outlined in Firmus’ prospectus have yet to be built.

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Greed-o-meter

Australia’s rental market is finally showing signs of cooling, according to Cotality, which says rent growth slowed sharply in the September quarter while vacancy rates climbed. But with the national median rent now $713 a week, tenants are hardly celebrating. Sydney remains the most expensive capital, while Darwin offers investors the highest rental yields. Here's how the markets compare.

Fear & Greed Q+A today

Businesses use text messages for everything from promotions to appointment reminders. But what if customers could simply reply, and get things done?

  

"This operational appointment for an appointment-based business is a great example of like we're already doing — a lot of businesses are already doing that really well today. But what's the dimension where we could improve?

 

And the dimension where we could improve is probably to give that recipient the chance to just message back really easily and say, 'I'm running 15 minutes late', or 'Could we bump to tomorrow because I actually want to talk to somebody about this other thing?'

 

And that could be more money in the business's pocket, right? If that person needs something a little bit different than what they were originally planning on coming in for or would have turned into a no-show."

 

This is the final episode in a three-part series with Sinch, a supporter of Fear & Greed.

News in brief

Government favours lighter AI regulation: The federal government is considering requiring major AI developers to test their models, report incidents and manage safety risks, rather than imposing detailed rules that could quickly become outdated.

EVs take a quarter of the market: Battery electric vehicles accounted for 24.2 per cent of new vehicle sales in September, more than double their share a year earlier. Petrol sales plunged 36 per cent and diesel fell 18 per cent.

Fortescue - China iron ore stand-off: Fortescue’s sales were about 8 per cent below shipments in the September quarter as negotiations with China’s state-backed iron ore buyer dragged on.

British Airways bets on premium passengers: British Airways is removing 88 economy seats from its Airbus A380s while expanding business class to 106 suites and premium economy to 84 seats. The overhaul reflects growing airline demand for higher-paying passengers willing to spend more on comfort during long-haul flights.

Cricket Victoria offers a different kind of office: Cricket Victoria is offering $16 “work-from-the-shield” tickets, giving remote workers access to Wi-Fi, a function room and a tea or coffee while watching Sheffield Shield matches.

Fear-o-meter

TenCap portfolio manager Jun Bei Liu is not a supporter of the Firmus IPO:

"Firmus is probably one of the most polarising IPOs I have ever seen. The lack of detail they disclose is unprecedented. I think Firmus is a very high-risk proposition—very high profile, but with enormous risk involved.

"Ninety-seven per cent of the data centre capacity they've promised hasn't even been built. They might deliver cheaper earnings in two years if they build what they promise, but that's speculative. If you want data centre exposure, you've got NextDC and Goodman Group. Both are better operators with proven track records.

"We much prefer to be in the companies that actually build those data centres—the engineers, the electrical contractors like Southern Cross Electrical and Genusplus. There are a lot of those smaller businesses now benefiting from the huge buildout that Australia is about to see.”

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