Archive · 9 Oct 2026
Nvidia-Backed Firmus Shelves $5 Billion IPO Amid AI Scrutiny
Firmus is an Australian company that builds data centres for artificial intelligence.
It planned to raise $5 billion by selling shares to the public.
Investors were unsure about the high price, the company’s debt and whether it could build many new centres successfully.
They also became concerned about a large project with another data-centre company that was reportedly no longer going ahead.
Some investors worried that existing owners could sell many shares as soon as trading began.
Firmus decided not to go ahead with the share sale and said it would seek money from private investors instead.
It may consider other ways to list its shares later.
One investment manager said this was a warning to think carefully about AI investments, but not proof that AI investing is over.
Firmus withdrew its planned $5 billion Australian IPO after investor demand weakened; it had proposed shares at A$11 each and a $30.6 billion equity valuation.
Investors questioned the valuation—nearly three times Firmus’s $10.5 billion August valuation—as well as roughly $30 billion in debt, execution risks and its limited data-centre track record.
Orders reportedly weakened after a planned 1.6-gigawatt data-centre development with CDC Data Centres was said to be no longer underway; investors also raised concerns about existing shareholders being able to sell more than half their shares on the first trading day.
Firmus said it would seek private-market capital and consider other listing options; Bloomberg reported it was exploring up to $3 billion from existing investors, while the company declined to comment on fundraising plans.
Firmus has two leased data centres in Melbourne and Singapore and plans five more across Asia-Pacific; fund manager Jun Bei Liu called the episode a reality check for AI investment, not necessarily the end of the AI trade.
- Who
- Firmus, an Australian data-centre operator backed by Nvidia and other investors.
- What
- It shelved its planned $5 billion IPO and said it would seek private-market funding and consider other listing options.
- When
- Friday; investor orders reportedly began to weaken on Wednesday after the IPO launched on Tuesday.
- Where
- Australia; Firmus operates leased data centres in Melbourne and Singapore and plans expansion across Asia-Pacific.
- Why
- Investor demand weakened amid concerns about its proposed valuation, debt, execution risks, limited track record, a stalled development partnership and possible early share sales by existing investors.
Investor caution
AI investment outlook
What the withdrawn IPO says about AI
Investor caution
The withdrawal highlights concerns about high valuations, substantial debt and capital requirements, execution risks, and whether AI infrastructure spending can produce sustainable returns.
AI investment outlook
Jun Bei Liu described it as a reality check but cautioned that it should not be interpreted as the end of the AI trade, noting that some challenges were specific to Firmus.
- Planned IPO size
- $5 billion
- Proposed share price
- A$11
- Proposed equity valuation
- $30.6 billion
- August valuation
- $10.5 billion
- Reported debt
- About $30 billion, according to analysts associated with the deal
- Current facilities
- Two leased data centres in Melbourne and Singapore
- Expansion plan
- Five additional data centres across Asia-Pacific
- Reported private fundraising
- Bloomberg reported Firmus was exploring up to $3 billion from existing investors; Firmus declined to comment on its funding plans.
