Firmus Technologies faces valuation cut ahead of ASX debut

Firmus Technologies, an artificial intelligence infrastructure and data centre company, faces a potential valuation cut ahead of its planned Australian Securities Exchange (ASX) debut. Originally seeking to raise $5 billion at a $44 billion valuation, the company is reportedly facing investor resistance to its $11 per share price tag.

Market speculation suggests the offer price could be reduced to as low as $8 or $9 per share, which would lower the company's valuation to between $25 billion and $35 billion. Investors have expressed skepticism regarding the company's limited operating history, its loss-making status, and its ambitious plans to build multiple data centres to meet AI demand.

While the company targets significant revenue and earnings by 2029 through planned facilities in Malaysia and Indonesia, fund managers have warned of the risks associated with its speculative structure and the potential for existing shareholders to flood the market following the listing.