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[BUSINESS] · Australia, Singapore, Indonesia, United States · 11 sources

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Firmus scraps US$5 billion Australian IPO amid AI valuation concerns

Firmus Technologies, an Nvidia-backed AI data center operator, has officially cancelled its planned initial public offering (IPO) on the Australian Securities Exchange (ASX). The company had aimed to raise between US$5 billion and US$5.5 billion, which would have resulted in an equity valuation of approximately US$30 billion to US$44 billion. This would have been one of the largest stock market listings in Australian history.

The decision to scrap the listing follows reports of weak investor demand and concerns regarding the company's high valuation. Investors have expressed skepticism over the sustainability of AI-focused infrastructure investments and the company's path to profitability. Some institutional investors, including UniSuper, reportedly declined to participate due to valuation concerns and potential debt requirements for future growth.

Firmus, which operates liquid-cooled 'AI factories' for clients such as Meta and OpenAI, currently has operational sites in Melbourne and Singapore, with further developments planned across the Asia-Pacific region. Following the cancellation, the company stated it will pursue capital through private markets and is considering alternative international public market options, including a potential listing on the Nasdaq.

Entities

Australian Securities Exchange · Firmus · Firmus Technologies · Nvidia · Oliver Curtis · Tim Rosenfield

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