Firmus scraps Australia's biggest IPO in decades amid investor doubt

Summarised from 2 outlets · 3 reports · Updated 9 Oct, 02:24 · Archive

Australian AI datacentre company Firmus has withdrawn its planned listing on the ASX after investor demand for its $44bn valuation failed to materialise.

Firmus Technologies has withdrawn its planned listing on the Australian Securities Exchange after investor demand for the much-hyped AI datacentre company evaporated. The company's board decided that proceeding with the offer was no longer in the best interests of shareholders. Firmus said it will now pursue capital from private markets and consider alternative public and private options.

The listing would have been Australia's biggest stock market debut since Telstra in 1997, with an anticipated $44bn valuation. The company had planned to raise billions through an initial share offer priced at A$11 per share. However, Firmus faced mounting scepticism over its huge valuation and earnings forecasts for a startup operating just two small sites.

The company's backers include chip maker Nvidia and Wall Street firms Blackstone, Jane Street and Coatue. According to sources, Firmus's valuation had ballooned from $1.85bn just over a year ago to almost $44bn in recent weeks, which one investment manager described as the situation becoming too 'fanciful'. The Guardian reports that the company had been losing hundreds of millions of dollars despite its soaring valuation.

CNBC reports the IPO would have valued the company at $30.6bn and raised $5bn. Firmus cited market volatility as a factor, saying the board determined the offer terms did not adequately reflect the strength of its business and long-term growth outlook.

How it is being reported

• Nvidia-backed Aussie AI firm Firmus withdraws historic IPO, citing market volatilityNvidia-backed Australian AI data center operator Firmus has withdrawn its planned IPO amid market volatility.CNBC · 9 Oct, 02:02
• Firmus pulls biggest ASX float since Telstra amid investor doubt about datacentre companyThe offer would have been the biggest debut on the stock market since the telecommunication giant in 1997 Firmus Technologies has scrapped what was set to be Australia’s biggest company listing in decades after investor demand for its much-hyped AI data centre business failed to materialise. A Firmus spokesperson said the board decided that proceeding with the offer was no longer in the best interests of the company and its shareholders. Continue reading...Guardian World · 8 Oct, 23:17
• Datacentre company Firmus’s high flying valuation may be coming back down to earth ahead of expected ASX debutSources say Firmus is slashing its price and may even shelve initial public offering altogether Get our breaking news email , free app or daily news podcast The momentum behind Firmus Technologies’ high-flying valuation is showing severe cracks just weeks out from its anticipated ASX debut. Multiple sources briefed on the matter told Guardian Australia the AI datacentre company is slashing its valuation to entice sceptical investors – or may even shelve its initial public offering altogether. Continue reading...Guardian World · 8 Oct, 01:57

In this story: Firmus Technologies · Nvidia · Blackstone · Jane Street · Coatue · ASX · Telstra · Australia

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