Nvidia-backed Firmus scraps $5 billion Australia IPO amid growing AI scrutiny
NVDA•Australian data centre operator Firmus shelved its planned $5 billion IPO after lukewarm demand and investor concerns about debt, valuation and execution. The company said it would pursue private fundraising; a person involved in the transaction said a Nasdaq listing would follow.
1. IPO plan shelved
Firmus said it would pursue capital from private markets and consider alternative international public market options. A person involved in the transaction said the private fundraising would be followed by a Nasdaq listing, but Firmus declined to comment on that possibility.
2. Investor concerns
Firmus had planned to sell shares at A$11 each, implying an equity valuation of $30.6 billion, nearly triple the $10.5 billion valuation after a fundraising round in August. Investors raised concerns about its debt, track record building AI data centres and the reported exit of a partner from a planned A$73 billion development. Firmus has two leased data centres online in Melbourne and Singapore and plans to build five more in Asia-Pacific.
3. Funding and expansion
Firmus’s draft prospectus projected $5 billion in annual earnings within five years from its data centres. The company has about $30 billion of debt, according to analysts working for the joint lead managers. Firmus declined to comment on its funding plans after it was reportedly exploring a raise of up to $3 billion from existing investors.
