While not addressing the specific matters raised in the investigation,Nuix said:“The prospectus was the subject of a thorough due diligence process involving leading law firms,internationally recognised accounting firms and top tier financial and investment banking advisers.”

The initial public offering of Nuix last December was the highlight of a booming float market with the promise of growth justifying the high price investors paid for the stock.

However,within months of its debut,Nuix’s mid-year results cast doubt on its ability to meet its prospectus forecasts. The company confirmed in April that it would miss its revenue forecasts for the financial year.

“A larger number of customers than expected (including one of Nuix’s largest customers) had recently indicated their preference to switch from a module-based subscription licence to a more flexible consumption-based licensing model,and that whilst this is supportive of Nuix’s long-term growth prospects it does have a negative impact on short-term statutory revenues,” the company said of the downgrade.