Business · Markets · 1 day ago
Firmus scraps planned Australian IPO as investors question its valuation
Firmus, an Australian company that builds and runs data centres for artificial intelligence, has scrapped plans to sell shares on the Australian stock market.
The company is backed by Nvidia and several investment firms, and its proposed listing would have been one of Australia’s largest.
Firmus operates two data centres in Melbourne and Singapore and plans to build more across the Asia-Pacific region.
Investors questioned whether the company’s planned valuation matched its current operations and growth prospects, and some were concerned about its debt and the money needed to expand.
Doubts also grew after data centre company CDC said its planned development arrangement with Firmus was no longer underway.
The cancelled listing reflects wider investor concern about the cost of building AI infrastructure and whether it will generate enough returns.
Firmus says it will seek money from private investors and consider other public and private market options, but has not confirmed a new listing plan.
Nvidia-backed Australian data centre operator Firmus shelved a planned IPO that aimed to raise US$5 billion, saying market volatility and conditions meant the offer was not in the best interests of the company and its shareholders.
The proposed listing was expected to be one of Australia's largest share offerings and would have valued Firmus at about US$30.6 billion, nearly three times its US$10.5 billion valuation after a fundraising round in August.
Firmus said it would seek capital from private markets and consider other public and private market options; a person involved in the transaction told Business Standard a private round could be followed by a Nasdaq listing, but the company declined to confirm that plan.
Investors raised concerns about Firmus' valuation, substantial debt, execution risks and the possibility that existing investors could sell more than half the shares on the first day of trading.
Firmus operates data centres in Melbourne and Singapore and has plans to expand across the Asia-Pacific, while its draft prospectus projected US$5 billion in annual earnings from its data centres within five years.
The decision came amid broader investor scrutiny of spending on AI infrastructure and uncertainty about whether the sector's large investments will generate long-term returns.
- Who
- Firmus, an Australian data centre operator backed by Nvidia and other investors.
- What
- It shelved its planned US$5 billion IPO and said it would seek private-market funding and consider other market options.
- When
- Friday, October 9, 2026.
- Where
- The planned listing was on the Australian Securities Exchange in Sydney; Firmus operates data centres in Melbourne and Singapore.
- Why
- Firmus cited market volatility and conditions; investors also questioned its valuation, debt, growth plans and execution risks.
This story does not have two clearly opposing sides.
The company will now pursue capital from private markets and consider alternative international public market options to support its next phase of growth
We think that Firmus indeed has a compelling story. It just doesn't have a compelling valuation
They were asking for a very big price tag for what would likely be expected to happen in the future assuming near flawless execution
I think the Firmus situation represents an important reality check for the AI investment boom, but I wouldn't interpret it as the beginning of the end of the AI trade
A fundraising round valued Firmus at US$10.5 billion, according to the articles.
Firmus launched its proposed IPO, with an indicative share price of A$11, according to Business Standard.
Potential investors began withdrawing orders after CDC Data Centres' chief executive said a planned development with Firmus was no longer underway, according to people involved in the IPO cited by Business Standard.
Firmus shelved the IPO and said it would pursue private-market funding and consider other options.
- Planned IPO fundraising
- US$5 billion
- Proposed equity valuation
- US$30.6 billion
- Valuation after August fundraising
- US$10.5 billion
- Debt
- About US$30 billion, according to analysts working for the IPO's joint lead managers
- Operating data centres
- Two, in Melbourne and Singapore
- Projected annual earnings
- US$5 billion within five years, according to Firmus' draft prospectus
Sources
Fracasso em oferta de ações de empresa de IA australiana eleva incerteza com Anthropic
Nvidia-backed Firmus scraps $5 bn Australia IPO amid growing AI scrutiny
Empresa australiana de data centers apoiada pela Nvidia desiste de IPO de US$ 5 bilhões
Australian AI data centre firm scraps mega stock market listing
Firmus pulls biggest ASX float since Telstra amid investor doubt about datacentre company
Australian Nvidia-backed AI data centre operator Firmus shelves IPO
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