Firmus prepares $5 billion IPO amid valuation concerns

Australian data centre operator Firmus is preparing for a $5 billion initial public offering (IPO) on the Australian Securities Exchange, expected to trade on October 23. The company priced its shares at A$11 each, resulting in an equity valuation of approximately $30.6 billion. This represents a nearly threefold increase from its $10.5 billion valuation in early August.

The rapid valuation surge has drawn scrutiny from investors regarding the company’s unproven track record and ambitious growth projections. Firmus, which is backed by Blackstone and Nvidia, aims to generate $5 billion in annual earnings within five years through planned data centres across the Asia-Pacific region.

Concerns have also been raised regarding the company’s significant debt load, estimated at $30 billion, which is roughly six times its forecast earnings. This comes amid broader market volatility, including rising global capital costs, surging bond yields, and record US default rates in private credit.