Business · Markets · 2 days ago
Firmus pulls Australian IPO plans after investors balk at valuation
Firmus Technologies, an Australian AI and data centre company, cancelled plans to sell shares on the Australian Securities Exchange this week.
It had aimed to raise about $7 billion and be valued at roughly $44 billion.
That would have made it one of the country’s largest stock market listings in decades.
Investors questioned whether the price was too high and whether the company had provided enough detail about its plans.
They were also concerned about the uncertain outlook for AI and data centres, and about the possibility that early investors could sell their shares soon after the listing.
Firmus planned to use money from the listing and further borrowing to build data centres in Australia and parts of Asia.
The founders are now seeking private funding, and the company plans to try listing on Nasdaq next year.
Firmus Technologies withdrew its planned Australian stock market listing after investor demand fell short of expectations.
The Sydney-based AI startup had planned to raise about $7 billion at a proposed valuation of roughly $43.7 billion.
Investors and analysts cited concerns about the offer price, limited information, the company’s growth prospects and anxiety about an AI bubble.
Firmus is now hoping to raise more private funding and attempt a Nasdaq listing next year.
- Who
- Firmus Technologies, an AI startup founded by Oliver Curtis, Tim Rosenfield and Jonathan Levee.
- What
- The company withdrew its planned IPO on the Australian Securities Exchange after demand faltered.
- When
- It pulled the listing on Friday, 9 October 2026.
- Where
- Australia; the planned listing was on the Australian Securities Exchange.
- Why
- Investor demand was weaker than expected, amid concerns about the valuation, the company’s information and the outlook for AI and data centres.
Firmus
Prospective investors and market critics
Valuation
Firmus
Firmus planned to list at about $43.7 billion.
Prospective investors and market critics
Some investors considered the offer overpriced; Ten Cap’s Jun Bei Liu said the valuation was too high.
Reason the listing failed
Firmus
Firmus attributed its inability to list at its desired price to market volatility.
Prospective investors and market critics
Philip Wohl said the company did not see enough demand, given uncertainty about AI hardware and its pricing.
Firmus ran into a wall of AI anxiety right at the time that they had planned to list
The valuation for the company was way too high to start with
liquidity exit strategy for some of the early investors
At the fixed price, indications are well in excess of the offer size.
Firmus prepared to open its bookbuild at an offer price of $11 a share, with bankers indicating demand was well above the offer size.
The bookbuild opened, while investment houses raised concerns that more than half of the share register could be sold after the listing.
Bankers were not getting the expected demand from Australian or US investors and sought bids from overseas hedge funds.
Firmus withdrew from appearing at a federal parliamentary inquiry into AI as it tried to save the IPO.
Firmus withdrew its planned ASX listing.
- Planned valuation
- About $43.7 billion; Guardian Australia reported $44 billion
- Planned fundraising
- About $7 billion
- Planned offer price
- $11 a share, later reportedly reduced to $8.25
- Founding year
- 2019
- Potential backers
- Nvidia and Blackstone were among investors Firmus said had committed US$2 billion
- Next listing plan
- Nasdaq next year
Sources
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