Australian NVIDIA-Backed AI Data Centre Operator Firmus Shelves IPO
The AI data-centre operator will now seek private capital after investors questioned its valuation and growth plans, with only two data centres operating.
- On Thursday, Firmus Technologies postponed its initial public offering and is weighing a private funding round instead. Order-taking for the listing closed that morning without clear indication of price or deal structure.
- Potential investors turned cautious, voicing concerns that existing shareholders might flood the market after the company's debut. This overhang exacerbated debates over whether Firmus's $44 billion valuation was too aggressive.
- Firmus had originally priced its offering at $11 per share, reflecting a $43.7 billion valuation. Market pressure raised questions about whether the price would be slashed to $9, $8, or even $6.
- Co-Founders Oliver Curtis and Tim Rosenfield face pressure to secure the float, with high-profile stakeholders including James Packer, Joe Hockey, and Alex Waislitz holding significant positions in Firmus.
- Proceeds from a successful listing would have funded graphics processing units for a data centre project in Batam, Indonesia, being developed with DayOne Data Centres Ltd. as part of an eight-year partnership with Nvidia.
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The IPO of Firmus Grid, an Australian artificial intelligence data center operator backed by Nvidia, collapsed in just forty-eight hours, becoming one of the biggest IPO failures in recent years, Bloomberg reports.
Nvidia-backed AI startup Firmus abruptly cancels $5 billion IPO as investors question $30.6 billion valuation - Tech Startups
Nvidia-backed Australian AI infrastructure startup Firmus has abruptly canceled its planned $5 billion initial public offering, just days after signaling strong investor demand for what would have been one of Australia’s largest-ever stock market debuts. The sudden reversal comes as […] The post Nvidia-backed AI startup Firmus abruptly cancels $5 billion IPO as investors question $30.6 billion valuation first appeared on Tech Startups.
The Economic Times
Times of IndiaGlobal Market: Maas Group shares plunge 11% after Nvidia-backed Firmus scraps $5 billion IPO
Maas Group shares plunged nearly 11% after Nvidia-backed Firmus withdrew its planned $5 billion IPO, raising valuation concerns. Despite the setback, contracts worth A$1.1 billion remain intact, providing revenue visibility amid uncertainty over Firmus's funding strategy and AI infrastructure valuations.
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