Business · Markets · 2 days ago
Firmus cancels proposed $7.2 billion IPO after investors hesitate
Firmus, a developer and owner of AI computing facilities, cancelled a planned listing on the Australian Securities Exchange.
The proposed IPO was valued at US$5 billion, or about A$7.2 billion, and would have made the company one of the exchange’s largest.
The facilities are designed to provide the computing power needed to develop and run artificial intelligence.
Investors were initially interested, but that demand did not turn into firm support for the share offer.
Some questioned Firmus’s track record because 97% of its projected 2028 earnings were expected to come from facilities that have not yet been built.
Another concern was the company’s stated US$30 billion in debt, which was reported as six times its projected earnings.
The company’s backers may still try a revised IPO, but no new plan is given.
The cancellation comes as Australian listings have been scarce, while smaller technology and biotech companies are preparing to list.
Firmus’s backers cancelled its proposed US$5 billion IPO after investor doubts outweighed initial demand.
The proposed offer valued the AI infrastructure company at US$44 billion, with shares priced at $11.
Investors questioned Firmus’s track record and its reliance on facilities that had not yet been built.
The article says 97% of projected earnings of US$5 billion by 2028 would come from centres not yet built.
Firmus had backing from global investors including Nvidia and Blackstone, as well as Australian investment groups.
- Who
- Firmus, an AI factory owner and developer, and the investors considering its IPO.
- What
- The backers cancelled a proposed US$5 billion IPO after investor doubts outweighed demand.
- When
- The cancellation was reported on October 9, 2026; the article says it happened the previous day.
- Where
- Australia; the proposed listing was on the ASX.
- Why
- Investors questioned Firmus’s unproven track record and the scale of projected earnings tied to centres not yet built.
Firmus IPO backers
Investors who raised doubts
Offer prospects
Firmus IPO backers
Backers pursued a proposed US$5 billion IPO at $11 a share and a $44 billion valuation.
Investors who raised doubts
Investors questioned the company’s unproven track record and whether projected earnings could be delivered.
AI infrastructure plan
Firmus IPO backers
Firmus said it would own end-to-end infrastructure, from grid connection and power procurement through to AI creation.
Investors who raised doubts
Investors were concerned that 97% of projected earnings by 2028 related to centres not yet built.
polarising
Firmus’s proposed IPO envisaged a price of $11 a share and a market value of $44 billion.
Firmus’s backers cancelled the proposed listing, according to the article published the following day.
- Proposed IPO
- US$5 billion
- Proposed share price
- $11
- Proposed market value
- $44 billion
- Projected earnings
- US$5 billion by 2028
- Share of projected earnings tied to centres not yet built
- 97%
Sources
Related news
Analysts split on Mesoblast, Transurban and NextDC shares
Summerset reports 10% year-to-date sales growth as resales rise
CDC warns inquiry about poor practices in Australia’s AI data centre boom
GQG Partners had US$149.2 billion under management at September end
Argent BioPharma sets four priorities, including healthy ageing research
Analysts see potential gains for two ASX shares over the next year
Kaoko reports copper-silver discovery at Namibia's Chalkos project
Analysts flag ANZ, CBA and Evolution Mining shares as potential sells
Adidas sues Australian fashion label White Fox over four-stripe clothing design
Five ASX 200 shares stand out for quality and value
