Maas Group shares drop on Firmus float repricing

• Maas Group shares fell up to 27.1% on the trading of the morning of Oct. 8 following market reports.
• The decline erased millions in market value due to fears over a valuation cut for its key partner Firmus.
• Media reports indicate Firmus is lowering its initial public offering price from $11 per share down to $8.25-$9 per share.

Maas Group (ASX:MGH) shares fell 27.1% to $4.66 in morning trade following media reports that artificial intelligence partner Firmus plans to lower its proposed initial public offering price.

The sudden price drop comes after media outlets reported that weak offshore demand has forced Firmus to reduce its listing price target from $11 per share to between $8.25 and $9 per share

"The company remains focused on delivering its core operating targets while working alongside strategic partners on critical infrastructure projects," said Maas Group H Managing Director Wes Maas.

The Dubbo-based construction services firm holds a 3.2% stake in Firmus, valued at $410 million, and maintains contract ties worth over $1.2 billion through its JLE Group division.

The market repricing highlights broader investor uncertainty around high-valuation listings across the artificial intelligence sector.

Following the announcement, the Maas Group share price was down at $4.96.

Maas Group previously expanded its exposure to high-tech development through direct equity holdings and construction delivery agreements.

The business recently completed the divestment of its construction materials division for $1.61 billion in cash to streamline operations.