Firmus scraps Australian IPO after investors balk at valuation and debt

Nvidia-backed Firmus withdrew its application to list on the Australian Securities Exchange on October 9, abandoning a proposed public offering targeting an A$44 billion valuation. The AI data-center operator cited market volatility. Prospective investors had questioned its price and debt burden; the company will now seek capital in private markets instead.

Firmus said prevailing market conditions meant the offering would not properly reflect its long-term growth prospects. It also said going public would not serve the best interests of the company or its shareholders. Alongside private funding, it will consider alternative public and private-market options and update shareholders as those progress.

A price investors would not accept

The proposed initial public offering, or IPO, was intended to raise about A$7 billion at A$11 a share. ABC reported that it would have been Australia’s biggest stock-market float since Telstra in 1997. That fundraising amount was distinct from the roughly A$44 billion valuation sought for the company as a whole.

Before the withdrawal, reports emerged that Firmus and its advisers were considering a smaller offering and a lower price of A$8.25 a share. Those were reported options, not completed changes. ABC attributed weak investor interest to concerns about debt, limited detail and the high asking price, alongside fears of an AI bubble.

UniSuper declined to invest directly. Its chief investment officer, John Pearce, said the pension fund saw a compelling business story but not a compelling valuation. He also worried that Firmus would repeatedly need more debt and equity to finance its expansion.

Borrowing against a buildout still ahead

Firmus expects to carry about US$30 billion in debt once its data centers are built, ABC reported. That is roughly six times the US$5 billion in operating earnings it forecasts for 2028. Both figures concern its projected business, rather than current debt and earnings.

Much of that expansion remains ahead. Firmus’s website describes seven AI factories across Australia, Singapore, Indonesia and Malaysia. Two sites are operational in Australia and Singapore; five are under development, with service targeted over the next 24 months. That leaves most of the listed portfolio still to be delivered.

Firmus builds and operates liquid-cooled data centers for clients including OpenAI and Meta. Its backers include Nvidia, Blackstone and Jane Street, according to the BBC. Nvidia holds a 7.2% stake, ABC reported.