Key Takeaways
- • Australia's largest superannuation funds declined to participate in the A$44 billion attempted ASX float of neocloud company Firmus Technologies, citing concerns over fundamentals, valuations and "exuberant" market sentiment, according to the Australian Financial Review.
- • The float collapsed earlier in the month, which UniSuper chief investment officer John Pearce characterised as evidence of a discerning market.
- • Institutional investment heads questioned the company's underlying fundamentals and pricing, with the AFR headline suggesting the shares could trade "closer to $1 than $11" in a reference to the pricing dynamics.
Summary
The investment heads of several of Australia's largest superannuation funds said they chose not to back the initial public offering of Firmus Technologies, a high-profile neocloud company, according to the Australian Financial Review. Their reservations centred on the company's fundamentals, its valuation and what they described as "exuberant" sentiment surrounding the offering.
The attempted float on the Australian Securities Exchange, valued at about $44 billion, collapsed earlier this month. UniSuper chief investment officer John Pearce said the outcome was evidence of a discerning market, suggesting that investors were unwilling to accept a valuation they did not consider justified by the company's prospects.
The AFR's headline, "Closer to $1 than $11," points to the gap between the pricing sought for the offering and the value that some institutional investors appeared willing to ascribe to it. The source material available for this story is limited, so further detail on the company's financials, the offer structure and the specific valuation arguments is not reflected here.
The attempted float on the Australian Securities Exchange, valued at about $44 billion, collapsed earlier this month. UniSuper chief investment officer John Pearce said the outcome was evidence of a discerning market, suggesting that investors were unwilling to accept a valuation they did not consider justified by the company's prospects.
The AFR's headline, "Closer to $1 than $11," points to the gap between the pricing sought for the offering and the value that some institutional investors appeared willing to ascribe to it. The source material available for this story is limited, so further detail on the company's financials, the offer structure and the specific valuation arguments is not reflected here.
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