Firmus withdraws planned ASX IPO amid weak investor demand, seeks private funding
Overview
Firmus Technologies, the Nvidia-backed AI datacentre company, withdrew its application for an ASX listing that would have raised about $7bn at a valuation near $44bn, and is now pursuing private capital instead.
Firmus says its board judged that proceeding was no longer in the best interests of the company and its shareholders, and cited market volatility and terms that did not reflect its business strength. Bloomberg reports, citing people familiar with the matter, that the company is exploring a private funding round of up to $3 billion.
Before the withdrawal, reports said the company was cutting its valuation or shelving the IPO because investors were sceptical. Minotaur Capital co-founder Armina Rosenberg said about 97% of contracted revenue sits on facilities not yet built. Bloomberg and the Wall Street Journal characterised the withdrawal as a sign of investor wariness toward AI valuations, though those are the outlets' interpretations rather than company statements.
Written by AI from the articles below · updated Oct 9, 5:21 AM ET
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Developments
5 developments
- Oct 9, 4:01 AM ET · 1 articleNvidia-Backed Firmus Abandons Australian IPO Amid AI Valuation ConcernsBloomberg · Technology: Nvidia-Backed Firmus Abandons Major Australian IPO Amid AI Valuation Concerns
- Oct 9, 3:42 AM ET · 1 articleFirmus Explores Raising Up to $3 Billion in Private Funding Round After Shelving IPOBloomberg · Technology: Firmus Explores $3 Billion Private Round After IPO Flop
- Oct 9, 3:18 AM ET · 1 articleScrapped IPO of Nvidia-Backed Firmus Grid Points to Limits of AI BoomThe Wall Street Journal · Tech: Scrapped IPO of Nvidia-Backed Firmus Grid Points to Limits of AI Boom
- Oct 8, 6:20 AM ET · 4 articlesFirmus scraps planned ASX listing after weak investor demand for AI datacentre businessThe Guardian · AI: Firmus pulls Australia's biggest ASX float after investors show weak demand for its AI datacentre business
- Oct 7, 8:57 PM ET · 1 articleFirmus reportedly slashing valuation ahead of ASX IPO, may shelve listingThe Guardian · AI: Firmus may cut its valuation or shelve its ASX IPO amid investor doubts
Article timeline
Follow the coverage from different perspectives. Times are ET.
- Bloomberg · TechnologyNvidia-Backed Firmus Abandons Major Australian IPO Amid AI Valuation Concerns
AIFirmus abandoned its attempt at one of Australia's biggest-ever initial public offerings after failing to attract global investors wary of frothy AI valuations. The Nvidia-backed data center company's withdrawal reflects growing investor skepticism toward AI-related companies.
- Bloomberg · TechnologyFirmus Explores $3 Billion Private Round After IPO Flop
AIFirmus Grid Ltd. is exploring a private funding round to raise as much as $3 billion after its planned initial public offering collapsed. The data center operator is seeking alternative financing options following the failed IPO.
- The Wall Street Journal · TechScrapped IPO of Nvidia-Backed Firmus Grid Points to Limits of AI Boom
AIAustralian cloud-computing firm Firmus Grid scrapped its IPO, which had sought a $30 billion valuation. The company had only two operational data centers at the time.
- CNBC · TechnologyNvidia-backed Firmus withdraws planned A$11 share IPO citing market volatility
AIAustralian AI data center operator Firmus, backed by Nvidia, has withdrawn its planned initial public offering, citing market volatility and conditions. Its board concluded the proposed terms did not adequately reflect the company's business strength and long-term growth outlook. Firmus said it will now pursue private market capital and consider other public and private options.
- The Guardian · AIFirmus pulls Australia's biggest ASX float after investors show weak demand for its AI datacentre business
AIFirmus Technologies withdrew its application to list on the ASX after investor demand for its AI datacentre business failed to materialise. The company had an anticipated $44bn valuation and planned to raise $7bn ahead of a 23 October listing, and will now seek private capital instead.
- Bloomberg · TechnologyNvidia-Backed Firmus Abandons Australian IPO Amid AI Valuation Concerns
AIFirmus Grid Ltd., a Nvidia-backed data center company, abandoned one of Australia's biggest-ever initial public offerings after failing to attract global investors wary of frothy AI valuations. The source provides no further details on offering size or valuation.
- Bloomberg · TechnologyNvidia-Backed Firmus Pulls IPO, Signaling AI Funding Strain
AINvidia-backed data center company Firmus has pulled its initial public offering, a dramatic move that Bloomberg says reveals new cracks in the AI funding boom. The source provides no further details on the reasons, offering size, or market conditions.
- The Guardian · AIFirmus may cut its valuation or shelve its ASX IPO amid investor doubts
AIDatacentre company Firmus Technologies is reportedly slashing its near-$44bn valuation to attract sceptical investors ahead of an ASX listing planned for 23 October, or may withdraw the IPO altogether. Its valuation rose from $1.85bn to $15bn in about eight weeks and then to almost $44bn days before the report, while the company has only two small operational sites. About 97% of its contracted revenue sits on facilities that are not yet built, according to Minotaur Capital co-founder Armina Rosenberg.
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