Firmus withdraws IPO after weak investor interest

Firmus had reportedly planned to raise $5 billion through the IPO, with an offer price of A$11 a share and a valuation of around $30.6 billion.[2] The proposed listing would have been Australia’s second-largest new share sale.[2] Firmus withdrew its application to list on the ASX, citing market volatility and conditions.[1][2] It said its board concluded that the offering terms did not reflect the business’s strength and long-term growth outlook.[2] The board also said proceeding would not be in the company’s or shareholders’ best interests.[2]

The IPO drew weak investor interest amid concerns about Firmus’s debt and a lack of detail.[1] Prospective investors reportedly pulled back over the A$11 share price and concerns about an AI bubble.[1] Reports said Firmus and its advisers considered cutting the price to A$8.25 and reducing the offering’s size.[1] Those reports indicate that changes to the proposed terms were considered, but the evidence does not say they were adopted. Firmus’s withdrawal followed those reported concerns; the company itself cited market volatility and conditions.[1][2]

Firmus raised $2 billion in an August funding round backed by Nvidia, Coatue Management, Blackstone and Jane Street; the round brought its total equity raised over the preceding year to more than $3 billion.[2] Its valuation was over $10.5 billion after that funding round.[2] Nvidia holds a 7.2% stake in the company.[1] Firmus says its portfolio includes seven AI factories across Australia, Singapore, Indonesia and Malaysia: two sites were operational in Australia and Singapore, while five were under development and targeted service readiness within 24 months.[1]

Firmus said it would pursue private-market funding and consider other public- and private-market options.[2] Its founders were hoping to pursue private funding and attempt a Nasdaq listing the following year.[4] Morningstar strategist Lochlan Holloway said Firmus expected to carry about US$30 billion of debt once its data centers were built, roughly six times its forecast US$5 billion of 2028 operating earnings.[1] Holloway described the neo-cloud financing model as borrowing against customer contracts to buy chips and using rental income to repay loans.[1] Firmus also had agreements with Meta to provide GPU computing capacity at its Southeast Asian AI data centers.[2]