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Nvidia-backed Firmus cancels $30bn Australian IPO citing market volatility

Oct 9, 6:21 AM2 min read

Drafted by AI from the sources below, fact-checked by the Ajako Taja Editorial Team · How we use AI

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AI data center operator Firmus scraps its historic $30bn listing in Sydney, opting for private capital after investors raised concerns over its valuation.

Australian AI data center operator Firmus has withdrawn its plans for a major stock market listing in Sydney, citing recent market volatility and unfavorable prevailing conditions.

Firmus, which builds and operates liquid-cooled "AI factories," had initially planned to raise approximately $5 billion by pricing shares at A$11 each. The proposed listing would have valued the company at more than $30 billion, making it one of the largest share sales in Australian history. However, the company's board concluded that the terms of the offering did not adequately reflect the strength of its business or long-term growth prospects.

The decision follows hesitation from major institutional investors. UniSuper, one of Australia’s largest pension funds, declined to participate in the IPO due to concerns over the company's valuation. UniSuper's chief investment officer, John Pearce, told the BBC that while Firmus has a "compelling story," it lacked a "compelling valuation" and expressed concern that the firm might need to take on more debt to fund growth.

Backed by Nvidia, Blackstone, and Jane Street, Firmus operates data centers across Australia, Singapore, and the Asia-Pacific region for clients including OpenAI and Meta. The company stated it will now seek capital from private markets and explore alternative public and private options. The International reported that Firmus recently announced a deal to provide GPU computing capacity to Meta using Nvidia's DSX platform.

Industry analysts noted that the withdrawal comes as investors scrutinize the massive spending on AI infrastructure against the clarity of long-term returns. While Australia has become a hub for data center investment due to land and energy availability, some investors remain cautious about pricing for new listings. Firmus indicated it will update its shareholders as alternative funding options progress.

Background

In August, Firmus completed a $2 billion funding round with investors including Nvidia, Coatue Management, Blackstone, and Jane Street. That round brought its total equity raised over the preceding year to more than $3 billion and its valuation at that time to over $10.5 billion.