# ASX Data Centre Contractors Volatile as Stalled IPOs Weigh on Market Sentiment

- URL: https://stocks.freetheai.org/news/asx-data-centre-contractors-volatile-as-stalled-ipos-weigh-on-market-sentiment-cc50a3
- Published: 2026-10-14T03:56:26Z
- Category: ipo; sentiment: mixed; impact: high
- Symbols: [ASX:SKS](https://stocks.freetheai.org/symbols/ASX-SKS), [ASX:SXE](https://stocks.freetheai.org/symbols/ASX-SXE)
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Australian engineering and electrical contractors serving the data centre sector experienced severe share price volatility after two major initial public offerings in the space stalled. SKS Technologies Group Limited (ASX:SKS) and Southern Cross Electrical Engineering Limited (ASX:SXE) suffered steep intraday losses on Tuesday, with SKS dropping 20.5% and Southern Cross falling 10%. Shares partially rebounded on Wednesday, with SKS up 10.67% to 7.625 AUD and Southern Cross gaining 6.48% to 4.845 AUD.

The market turmoil followed the cancellation of a proposed $7.9 billion listing by Firmus after investor orders fell well short of target. Sentiment was further dampened when AirTrunk pushed its planned REIT listing to early 2027, citing rising bond yields and broader weakness in technology equities. The stalled deals exposed high valuation multiples across data centre contractors, where rapid earnings growth had left little room for sector disappointment.

Investors will watch whether high valuations remain supported by earnings delivery and contracted work orders. SKS Technologies stated in a regulatory response that its project pipeline and order book remain consistent with previous outlooks, while several sector peers continue to project strong financial growth heading into future fiscal periods.

## Key points

- Firmus cancelled its proposed $7.9 billion initial public offering after failing to secure sufficient investor demand.
- AirTrunk delayed its planned REIT listing until early 2027 due to tech market weakness and rising bond yields.
- SKS Technologies Group Limited (ASX:SKS) plunged 20.5% on Tuesday before climbing 10.67% to 7.625 AUD on Wednesday.
- Southern Cross Electrical Engineering Limited (ASX:SXE) rose 6.48% to 4.845 AUD following a 10% drop the previous day.
- SKS Technologies confirmed that its project pipeline and contracted work remain aligned with previous guidance.

## Questions and answers

### Why did SKS Technologies and Southern Cross Electrical shares drop?

Shares fell sharply following the cancellation of the Firmus IPO and delays to AirTrunk's planned REIT listing, which created negative sentiment across Australian data centre contractors.

### Why was the Firmus IPO cancelled?

Firmus cancelled its $7.9 billion listing after major institutional investors cut orders and the book closed well short of its target despite banker attempts to lower the offer price.

### What is the current outlook for SKS Technologies?

SKS Technologies confirmed that its project pipeline and work in hand remain consistent with previous announcements, maintaining strong engagement in converting ongoing opportunities.