Full Breakdown
Firmus Withdraws Planned $44 billion ASX Float Amid Investor Doubts
By Drooid · · How we work
Core Event
On October 9, 2026, Firmus Technologies announced it had withdrawn its application to list on the Australian Securities Exchange (ASX). The company will now seek private-market capital and consider alternative public options, promising further updates for shareholders.
Background & Context
Founded in 2019 by Oliver Curtis, Tim Rosenfield and Jonathan Levee, Firmus moved from bitcoin mining to AI-focused data centres in 2024. Backed by Nvidia (7.2 % stake) and investors such as Blackstone, Jane Street and Coatue, the firm marketed “neocloud” liquid-cooled AI factories across Australia, Singapore, Indonesia and Malaysia. Its valuation rose from under $2 billion in 2025 to an announced $44 billion ahead of the planned float, which would have been the largest ASX listing since Telstra in 1997.
Data & Statistics
- Target valuation: $44 billion (? A$43.7 billion).
- Proposed share price: A$11 per share (? US$7.1 billion raise).
- Operating footprint: Two data centres (Melbourne and Singapore); five sites under development, targeting 46 MW now and 865 MW in the pipeline.
- Debt projection: About US$30 billion once all sites are built, roughly six times the US$5 billion operating earnings forecast for 2028.
- Revenue: Most recent annual revenue reported at $50 million.
Official Statements & Responses
Firmus’s board said global market volatility and “prevailing market conditions” made the proposed terms untenable, prompting the decision to abandon the float. UniSuper chief investment officer John Pearce noted the fund would not invest directly but could acquire shares indirectly through index strategies if the float proceeded. He described the valuation as “priced to perfection” and warned of the need for additional debt and equity. Morningstar senior market strategist Lochlan Holloway said the company’s “neo-clouds are heavily geared,” borrowing against customer contracts to purchase chips and using rental income to service loans.
Criticism & Opposition
Several investors and analysts voiced doubts:
- UniSuper’s Pearce argued that the high valuation required everything to go right and highlighted the risk of continual market-raising of debt and equity.
- Holloway (Morningstar) labeled the debt load as “heavy” and warned that credit cycles often drive boom-and-bust dynamics in infrastructure projects.
- Ten Cap portfolio manager Jun Bei Liu called the IPO “the most polarising” she had seen, citing an “unprecedented lack of detail” in the prospectus.
- Fund manager Roger Montgomery questioned earlier indications that indicative orders exceeded the offer size, asking why the price was subsequently cut.
These critiques focus on the gap between the firm’s ambitious growth plan and its limited operating track record, as well as potential share-price pressure from existing shareholders after listing.
Conflicting Reports & Gaps
Sources differ on several quantitative details:
- The proposed capital raise is reported as US$5.5 billion, US$7 billion and US$9.2 billion.
- Share-price expectations range from the original A$11 to suggested cuts at A$9, A$8.25 and A$5.50.
- Debt estimates appear as US$30 billion in some analyses, while other reports cite a “$US30 billion” figure without specifying the source.