Full Breakdown
Firmus Abandons Planned ASX IPO Amid Valuation and Market-Volatility Concerns
By Drooid · · How we work
Core Event
On October 9, 2026 the board of Australian AI-data-centre operator Firmus announced that it was withdrawing its application to list on the Australian Securities Exchange (ASX). The company had been targeting a share price of A$11, a raise of about US$5 billion, and a market valuation between A$30.6 billion (?US$30 billion) and A$44 billion.
Background & Context
Firmus, founded in 2019 by Oliver Curtis, Tim Rosenfield and Jonathan Levee, began as a bitcoin-mining operation before pivoting to high-performance computing (HPC) and “AI factories” – modular data centres that use liquid-cooling and Nvidia GPUs. Backers include Nvidia (7.2 % stake), Blackstone, Jane Street, Coatue Management and other Wall Street investors. The firm operates two sites (Melbourne and Singapore) and has a pipeline of 912 MW, of which 46 MW is built.
The IPO would have been the second-largest Australian listing ever, following Telstra’s 1997 float, and was slated for October 23, 2026. Investor appetite for AI-infrastructure listings has been volatile, with rising bond yields and higher borrowing costs prompting greater scrutiny of valuations that rely heavily on future capacity rather than current revenue.
Data & Statistics
- Proposed share price: A$11 per share
- Target raise: US$5 billion (?A$7 billion)
- Valuation range in sources: A$30.6 billion, A$43.9 billion, A$44 billion
- Operational capacity: 46 MW built; 912 MW contracted pipeline
- Debt load (estimated by lead managers): ?US$30 billion, giving an enterprise value near US$60 billion
- 2026 revenue: US$50 million (?A$68 million) with a loss of US$68 million reported by UniSuper’s filing
- Key investors: Nvidia, Blackstone, Jane Street, Coatue, Blackwattle Investment Partners, Ten Cap, Wilson Asset Management
Criticism & Opposition
Institutional investors expressed concrete concerns. UniSuper’s chief investment officer John Pearce noted that the valuation was “not compelling” and warned that Firmus would likely need to return to the market for additional debt and equity to fund its expansion.
Oscar Oberg of Wilson Asset Management described the market’s reaction as a “disappointing” but understandable “vote of confidence” that the pricing was too aggressive.
Conflicting Reports & Gaps
Sources differ on the exact valuation target. Reuters cited A$30.6 billion, while the BBC and The Conversation referenced valuations “over $30 bn” and “almost A$44 billion,” respectively. The Nikkei reported a valuation of A$43.9 billion. No source disclosed the final pricing after the board’s withdrawal, and the precise composition of the planned private-fundraising round (equity vs. debt) remains undisclosed.
Verbatim Quotes
- “The Board therefore concluded that proceeding with the Offer was not in the best interests of the Company and its shareholders.”
- “They were asking for a very big price tag for what would likely be expected to happen in the future assuming near flawless execution,” — Joseph Koh, portfolio manager at Blackwattle Investment Partners
- “It's disappointing. The [Australian Securities Exchange] needs new stories and this could have been one if it was correctly priced,” — John Pearce
What’s Next
Firmus is reportedly in talks with existing investors about a private raise of US$2-3 billion, potentially combining equity and debt. Sources say a Nasdaq listing is being explored for the longer term, though no timetable has been set. The company’s pipeline of AI factories and contracts with OpenAI and Meta remain central to its growth narrative, but execution will now depend on securing private capital under tighter market conditions.