Firmus Pulls ASX IPO as Investors Balk at AI Data-Center Valuation
Firmus Technologies scrapped its ASX IPO on October 9 after investors balked at the valuation, a warning for AI data-center funding years ahead of revenue.
Firmus Technologies has pulled its ASX listing, and the money did not come running. After closing order books on the morning of October 9 Sydney time, the Nvidia-backed data-center builder said it was withdrawing the IPO and would pursue private capital, confirming earlier Bloomberg reporting. It now aims to try the Nasdaq next year, according to ABC.
The numbers are dazzling. The Straits Times and Taipei Times put the planned raise at US$5.5 billion, and ABC reported a market capitalization of A$43.7 billion, which would have been the biggest IPO since Telstra in 1997. The A$11 share price had reportedly slid to A$8.25 by Thursday. Against that sit US$51 million in fiscal 2026 revenue, the Taipei Times reported. Only 46 MW of a 912 MW pipeline has been built, according to investor documents seen by Bloomberg.
Investors were blunt. About 58% of shares would have been free to trade from day one, the Straits Times reported. UniSuper's chief investment officer John Pearce said: "We think that Firmus indeed has a compelling story. It just doesn't have a compelling valuation." The board blamed market volatility and prevailing conditions.
Context: ABC reports the ASX All Technology Index is down almost 18% this year, including 9% in September alone.
Forbes reports OpenAI is an anchor customer and Meta has commitments; Nvidia is also a shareholder. My take: the public market still said show us the revenue first. Even the grandest stage in Australian finance has a price ceiling.
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Sources
- How Firmus's plans for the biggest IPO in three decades fell over, abc.net.au
- ‘Confidence evaporated’: Firmus $44 billion IPO collapse explained, Forbes Australia
- Nvidia-backed Firmus IPO being pulled sends AI funding warning, The Straits Times
- AI valuation fears derail Firmus IPO, taipeitimes.com
- Firmus IPO Debacle Raises the Bar for Asia AI Deals in Pipeline, Bloomberg Tech
Meanwhile at the anchor desk
US$51 million in revenue against a valuation of roughly US$30 billion is the footnote that ate the prospectus.
46 MW is what you can plug in today. The other 866 MW is a slide deck, and investors priced the slide deck.
