Updated Edition 3 - Reports say AI data center operators may cut IPO by 5 billions AUD, Firmus investor stock prices fall
路透社2026/10/08 10:51Firmus is weighing options to reduce its IPO size and cut the offer price as Maas’s share price tumbles, amid growing investor doubts over Firmus’s valuation, debt, and overall market demand. The uncertain prospects of the Firmus IPO have resulted in a AU$517 million market cap loss for Maas. Investors are concerned that Firmus, backed by Nvidia, may scale down its AU$5 billion IPO—the second largest in Australian history. This uncertainty led to a 30% plunge in the share price of Maas Group, which holds a 3.2% stake in the AI data center operator. According to a knowledgeable source, details were still being finalized as of Thursday. Firmus has not responded to Reuters’ request for comment. The market’s perception of AI has shifted sharply in recent weeks, driven by fears of excessive valuations, concerns about the technology’s potential to become “uncontrollable,” and apprehensions that huge tech investments “might never recover their costs.” According to local media, Firmus and its advisers are considering reducing the IPO size and lowering the offer price from AU$11 to AU$8.25 per share. Earlier on Thursday, bookbuilding was completed, and a reviewed term sheet informed potential investors that “joint active bookrunners will provide further information.” Some investors remain cautious about the valuation. The initial term sheet had indicated that indicative demand exceeded the deal size, but some investors told Reuters they were wary of the company’s rising valuation, its ability to deliver its ambitious growth plan, and its heavy debt load. Foreign investor demand for Firmus’s stock was reportedly weaker than expected, while this IPO was initially snapped up as a potential milestone deal for Australia’s subdued capital market. Maas’s share price closed 22.4% lower on Thursday after falling as much as 30%, marking its lowest level since May 6. The company’s market valuation shrank by about AU$517 million (US$359.52 million), putting its current valuation at AU$1.79 billion. The Australian Securities Exchange (ASX) questioned Maas following the share price collapse. In a filing to the exchange, Maas attributed the sharp price movement to speculation around whether the Firmus IPO would proceed as planned, adding that it was not aware of any undisclosed information to explain the swing. “The sell-off is a reasonable write-down of the intrinsic value of its Firmus stake, but the magnitude is excessive,” said Emanuel Ajay Datt, managing director at Datt Group. Datt noted that if Firmus’s IPO price is reduced from AU$11 to AU$9 per share, it would wipe AU$75 million off the value of Maas’s stake, but this loss is relatively moderate compared to the day’s overall market cap decline. At AU$5 billion, the Firmus IPO was expected to be the largest Australian listing in nearly 30 years, second only to Telstra’s AU$10 billion float in 1997. (US$1 = AU$1.4380)
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Reuters, October 8 - Investor concerns that Nvidia-backed Firmus may scale back its AUD 5 billion Australian IPO caused a 30% slump in shares of construction services provider Maas Group MGH.AX, which holds a 3.2% stake in this AI data center operator.
According to a source familiar with the matter, as the second-largest stock offering in Australian history, Firmus’s final deal details were still being ironed out as of Thursday.
Firmus did not respond to Reuters’ request for comment.
In recent weeks, sentiment around AI has shifted rapidly; prior concerns over high valuations have now evolved into worries that the technology may “spiral out of control” (link), and that massive tech spending “may never recover costs” (link).
Local media reported that Firmus and its advisers were considering reducing the IPO’s size and lowering the per-share price from AUD 11 to AUD 8.25 on Thursday.
Earlier on Thursday, bookbuilding had closed, and a terms sheet reviewed by Reuters informed potential investors that “the joint lead managers will provide further information regarding this offering.”
Some investors express caution about valuation
The initial terms sheet for the transaction (link) indicated that indicative subscription bids exceeded the deal’s size. However, several potential investors (link) told Reuters they were wary about the company’s soaring valuation, its ability to execute ambitious growth plans, and its heavy debt burden.
Reports said that demand from overseas investors for Firmus shares was below expectations, even though the IPO was supposed to be a milestone deal for Australia’s sluggish capital markets.
Maas shares closed down 22.4% on Thursday, having fallen as much as 30% intraday to their lowest levels since May 6. The company’s market value shrank by about AUD 517 million (USD 359.52 million), and it is now valued at AUD 1.79 billion.
The Australian Securities Exchange (ASX) queried Maas about the selloff in its shares.
The company stated in filings to the exchange that speculation about whether the IPO would go ahead had affected market sentiment, adding it was not aware of any undisclosed information that could explain the share price movement.
“This selloff reflects a reasonable adjustment to the value of its Firmus holding, but the drop was excessive,” said Emanuel Ajay Datt, managing director at asset manager Datt Group.
Datt said if Firmus’s IPO price drops from AUD 11 to AUD 9, this would reduce the value of Maas’s stake by about AUD 75 million, but added that this loss is mild compared to the fall in the company’s market cap for the day.
The AUD 5 billion Firmus IPO was set to be Australia’s largest new share issue in almost three decades, only behind the roughly AUD 10 billion 1997 listing of Telstra TLS.AX, Australia’s biggest telecom operator.
(USD 1 = AUD 1.4380)
(To assist non-native English speakers, Reuters provides automated translations of its reports in several languages. As automated translations may contain errors or lack essential context, Reuters does not guarantee the accuracy of the automated text and offers it only for reader convenience. Reuters accepts no liability for any damages or losses arising from the use of its automated translation services.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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Latest Update October 8 – Pacira BioSciences (PCRX.O) shares surged by 44%, hitting a more than three-year high at $36.30. If the rally holds, PCRX is poised for its largest single-day gain on record. Pharmaceutical company Viatris (VTRS.O) will acquire Pacira BioSciences in a $1.65 billion cash deal, offering $36.50 per share. The offer represents a premium of approximately 44.8% over Pacira’s recent closing price of $25.20. The transaction will add Pacira’s non-opioid pain medications Exparel and Zilretta to Viatris' product portfolio. Viatris shares fell 2.6% to $17.04. JPMorgan stated: “We believe this acquisition will not significantly alter VTRS' overall financial profile in the short or long term, and expect Exparel’s sales to gradually decline post-2030 due to generic market entry.” Both parties expect to complete the transaction by the end of 2026. Including intraday fluctuations, PCRX shares have risen 40.2% year-to-date, while VTRS has gained 36.8%. (For the convenience of non-English speakers, Reuters provides automated translations of its reports into several other languages. As automated translation may contain errors or lack the necessary context, Reuters does not guarantee the accuracy of automated translated texts and provides them for readers’ convenience only. Reuters assumes no liability for any damage or losses resulting from the use of automated translation.)
Updated Version 3 - According to the Financial Times, Starbucks once considered acquiring Chipotle
New charts have been added, providing a detailed overview of Chipotle and Starbucks’ businesses. According to Reuters on October 8, referencing the Financial Times from Thursday, Starbucks had considered acquiring Chipotle Mexican Grill. Such a move would enable CEO Brian Niccol to return to the burrito chain, where he served as chief executive before joining Starbucks two years ago. The Financial Times, citing sources familiar with the matter, reported that the coffee chain has been working with advisers in recent months to formulate an acquisition proposal for Chipotle. Both Starbucks and Chipotle did not immediately respond to Reuters’ requests for comment. Chipotle currently has a market capitalization close to $39 billions, with its stock rising about 6% on Thursday, while Starbucks’ shares fell approximately 3%. According to data from the London Stock Exchange Group (LSEG), Starbucks is valued at about $107 billions. As consumers cut back on discretionary spending, Chipotle has faced declining customer traffic, while rising food and labor costs have pressured profit margins across the sector. Its stock price has dropped about 17% so far this year. Analysts suggest that a potential deal could also accelerate Chipotle’s international expansion. “I see the appeal of this prospective transaction in that CEO Brian Niccol would have the opportunity to leverage Starbucks' European franchise partnerships to pursue Chipotle’s growth more aggressively,” commented Jim Sanderson, an analyst at Northcoast Research. As of the end of last year, Chipotle operated nearly 4,000 restaurants in the US and about 100 abroad. In comparison, Starbucks has about 40,000 stores globally, with roughly 18,000 in North America. Niccol joined Starbucks in 2024 after six years at Chipotle, where he was credited with leading the company’s turnaround following a food safety crisis and with driving several years of strong digital sales growth. He was brought to Starbucks to reverse its declining performance, and over the past two years has focused on improving the customer experience by streamlining menus and reducing wait times, resulting in four consecutive quarters of comparable sales growth. “We still have more work to do,” Niccol said in July, after the company raised its annual sales and profit forecast. “Given that Starbucks is in a period of transformation and has yet to deliver the margin improvements investors expect, the timing of this decision seems somewhat strange. At first glance, it appears to be less about accelerating transformation and more about running out of options,” said Brian Jacobsen, Chief Economist at Annex Wealth Management.
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