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2026-10-09 05:19 UTC → 2026-10-09 10:56 UTC ·
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Firmus AI infrastructure scraps Australian IPO abandoned after amid AI valuation woes concerns
Australian data centre operator Firmus is preparing for an Technologies, the Nvidia-backed ‘neocloud’ operator, has officially cancelled its planned initial public offering (IPO) on the Australian Securities Exchange, with trading expected to commence on October 23. Exchange (ASX). The company has priced its shares at A$11 each, resulting in had intended to raise between US$5 billion and US$5.5 billion, targeting an equity valuation of approximately $30.6 billion. This figure represents a nearly threefold increase from its $10.5 US$30 billion valuation recorded in early August. Firmus, which operates as a ‘neocloud’ business, rents specialized processing chips to major technology firms including OpenAI, Meta, and Nvidia. Backed by Blackstone and Nvidia, the company aims US$44 billion. The decision to generate $5 billion in annual earnings within five years through planned data centre expansions across scrap the Asia-Pacific region, including facilities in Malaysia listing follows reports of weak investor demand and Indonesia. Despite the valuation surge, the IPO faces significant scrutiny. Critics point to skepticism regarding the company’s unproven track record, high capital expenditure requirements, valuation and the risk of rapid hardware obsolescence. Furthermore, path to profitability. Institutional investors, including UniSuper, reportedly declined to participate due to concerns have been raised regarding Firmus’s significant over valuation and the debt load, estimated at $30 billion, which is roughly six times its forecast earnings. requirements necessary for future growth. This financial pressure coincides with broader follows earlier market volatility, including rising global capital costs, surging bond yields, and record US default rates in private credit. As the debut approaches, Firmus faces potential valuation cuts due to investor resistance to speculation that the initial A$11 share price. Market speculation suggests the offer price could might need to be reduced to as low as $8 or $9 per share, which would adjust the company's valuation. Fund managers have also warned of risks associated with its speculative structure and the potential for existing shareholders to flood the market following attract interest. Despite the listing. In early October, reports indicated that failed ASX debut, Firmus was facing intends to pursue capital through private markets and is considering alternative international public market options, including a potential valuation cut, with speculation that listing on the offer price might drop Nasdaq. The company continues to between $8 operate liquid-cooled ‘AI factories’ for major clients such as Meta and $9 per share to address investor skepticism regarding its loss-making status OpenAI, with existing sites in Melbourne and limited operating history. Singapore and further planned expansions across the Asia-Pacific region.