The Australian Financial Review

Inside the Circus Around Our Biggest IPO in Years, Two ASX Stars Implode and the Number to End Th...

The Australian Financial Review’s weekly roundup tackled three major stories: the Albanese government’s decision to slash the National Disability Insurance Scheme budget by $15 billion, the explosive growth of exchange‑traded funds in Australia, and the looming float of AI‑focused data‑center firm Firmus, billed as the biggest ASX IPO in a generation. Key data points highlighted the scale of change – the NDIS cut will remove 160,000 participants, while ETF assets under management are projected to hit $380 billion this year, up from $320 billion last year and $71 billion in 2020. Firmus has already raised nearly $2 billion in private capital, pushing its valuation to about $7.7 billion ahead of a formal prospectus. The episode illustrated the market buzz: a lavish non‑deal roadshow lunch for 150 fund managers underscored investor appetite, and thematic ETFs – from AI to gold – are reshaping how capital is allocated, often bypassing traditional fund managers. Analysts warned that passive money’s rise puts pressure on active managers, who now struggle to communicate company stories to a largely algorithmic audience. Overall, the convergence of fiscal tightening, passive‑investment momentum, and high‑profile IPOs signals a shift in Australian capital markets. Investors must navigate tighter government spending, the growing influence of ETFs on price discovery, and the uncertainty surrounding high‑valuation tech listings like Firmus.