Firmus wobbles have opponents relieved, critics questioning deals

The news of data centre operator Firmus's share market float being pulled has been met with disappointment from some investors.

But in one community where Firmus had big plans, the response was relief.

Firmus was attempting to raise cash from investors to build an AI factory in Launceston, due to begin operating early next year, and had plans for two more in Tasmania, until this week's development.

A group based in northern Tasmania, called the Environmental Awareness Association, has been campaigning against the company's proposals.

Nicholla Thompson from the association lives at Rowella, across the Tamar River from Firmus' proposed Bell Bay site, and said community backlash had contributed to investor concerns.

"The dominoes are starting to fall," she said.

"They wanted it to sneak through and not be seen by people; it was thanks to the little group that we've got that really highlighted what was happening over here."

The opponents' group was relieved by the news, but was not yet celebrating it as a win for their campaign.

"A big company shouldn't be able to come in and change substantially how we choose to live in a beautiful community like this and put an AI factory up in the middle of it and have us have to endure the sound, the diesel fumes and the total destruction of our properties in value and in peace and how we live," Ms Thompson said.

Firmus 'well-positioned' to continue plans, company says

When asked about any impact on its Tasmanian projects, a Firmus spokesperson said nothing had "fundamentally changed" about the business.

"Firmus remains well-positioned to execute on its plans, invest in its projects and serve its customers and communities, including those in Tasmania,"

it said.

Sam Baker, from Shadforth Financial Group, said it was hard to tell if the community opposition had contributed to the IPO failing, but it would have been considered by investors.

He said it would be important to watch what Firmus did over the coming weeks and months to see if it could raise the capital.

"Firmus not being able to get this ASX listing off the ground has cast some doubt over the funding of their potential rollout of data centres in northern Tasmania,"

he said.

State government optimistic

Deputy Premier Guy Barnett said the IPO was a matter for Firmus, but the Tasmanian government had been supportive "all the way through" the company's plans in the state.

"That relationship is positive and we look forward to it continuing in a collaborative, positive way," he said.

"We support investment in Tasmania, we support development, we support growth, we support more jobs."

The Tasmanian Greens said the state government should be embarrassed by its support of Firmus, saying investors, academics and communities had been raising concerns for months.

"The big question for Tasmania is why our government was so easily pulled into uncritically supporting this company despite the furiously waving red flags surrounding it," Tabatha Badger, the Greens' information and technology spokeswoman, said.

Ms Badger said the government should pause any planning decisions on Firmus's three proposals in Tasmania.

"With the ongoing questions and scrutiny that have come off the back of this failed IPO, Tasmanians have to have answers before the government proceeds any further,"

she said.

The Tasmanian-founded company had recently announced sponsorships with the Tasmania Devils AFL club, several cricket teams, including the Hobart Hurricanes, and the JackJumpers and Tasmania Jewels basketball teams.

Dr Andrew Hughes, a political marketing specialist at ANU's College of Business and Economics, said the Firmus IPO falling over was a golden opportunity for the Devils to walk away from the deal.

He said he was surprised the Devils had signed with Firmus, given the club was already exposed to community backlash over the proposed AFL stadium in Hobart.

"There was this big wedge already there, so the community is divided already and then you get a sponsor who already comes from a divided perception as well," he said.

"When they appointed Ken Hinkley as coach, they talked about community and character and care.

"I thought, 'well, hang on, if that's the things you stand for, then that's exactly what you need to look for in the sponsors and partners you grow the club with is exactly those sort of core values as well'.

"And data centres, in the minds of most people, do not say that, so it sets you back."

Dr Hughes said Firmus would now have a lot of work to do to rebuild trust in its brand.

"Going into a community where it's already a negative perception of that brand and then you build on it by adding some more negative to it … because your IPO, which would have funded those deals, does not go through," he said.

Dr Hughes said if the sponsorship deals with Firmus fell over, it would be harder for the clubs to re-enter the market and find new sponsors.