ASIC exercises mandatory data collection power on Macquarie Group (ASX:MQG)

Company News

by Michael Luu

Macquarie Group (ASX:MQG) has come on ASIC’s radar, as the financial regulator is assessing the investment bank’s influence over the problematic $1.7 billion IPO of Nuix.

ASIC has exercised its Section 19 power to require both Nuix and Macquarie to supply further documents and information for its investigation into concerns related to the software developer’s listing.

Macquarie’s 76 per cent-owned data analyst witnessed $2.9 billion being erased from its books, following two downgrades in profit guidance since its listing in December 2020.

The corporate watchdog is seeking more insight for a clearer picture of whether or not Nuix exaggerated its prospectus forecasts ahead of the IPO. Section 19 grants ASIC the authority to place mandatory data collection requests and conduct private witness interviews.

The move happened on the back of media reports that Nuix’s co-founder Tony Castagna has become the subject of a Federal Police investigation into alleged violations of the Corporations Act.

The IPO turned out to be Mr Castagna’s $80 million payday, which has raised suspicions and concerns about the legitimacy of the windfall profit.  

Shares in Macquarie Group (ASX:MQG) are trading 0.1 per cent higher at $153.65

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.