Full Breakdown
Firmus Technologies’ Mega-IPO Falls Apart: What Went Wrong and Why It Matters
By Drooid · · How we work
Core Event – Withdrawal of the ASX Listing
On October 9, 2026, Firmus Technologies announced it was withdrawing its application to list on the Australian Securities Exchange. The float would have raised up to A$7 billion at A$11 per share, valuing the company at roughly A$44 billion—the second-largest Australian IPO since Telstra’s 1997 listing.
Background & Context – From Bitcoin Mining to AI “Factories”
Founded in 2019 by Oliver Curtis, Tim Rosenfield and Jonathan Levee, Firmus shifted from bitcoin mining to AI data-centre construction. Backed by Nvidia, Blackstone, Jane Street, Coatue and others, it secured $2 billion in commitments for modular, liquid-cooled facilities across Australia, Singapore, Malaysia and Indonesia. By late 2025 its private-market valuation had risen to over A$15 billion, and the IPO was pitched as funding for seven contracted and four planned sites.
Data & Statistics – The Numbers Behind the Deal
- Target raise: up to A$7 billion (? US$5 billion)
- Proposed share price: A$11 (? US$8)
- Valuation at IPO price: A$44 billion (? US$30 billion)
- Debt load (lead-manager estimate): about US$30 billion, giving an enterprise value near US$60 billion
- Revenue FY 2026: US$51 million (? A$70 million)
- Built capacity: 46 MW of a contracted 912 MW pipeline (? 5 %)
- Free-float risk: escrow would restrict 42.4 % of shares, leaving 57.6 % freely tradable.
Official Statements & Responses – Company and Board Rationale
Investment banks leading the book-build—Bank of America, JPMorgan, Morgan Stanley and Morgans—were contacted for comment but did not respond.
Criticism & Opposition – Valuation and Over-hang Concerns
John Pearce, CIO of UniSuper, warned that “Firmus indeed has a compelling story. It just doesn’t have a compelling valuation.” Armina Rosenberg of Minotaur Capital noted the offer was “too rich for a company with 46 MW built out of 912 MW contracted.” The over-hang—more than half of the shares could be sold immediately after listing—was cited as a deterrent for institutional buyers.
Why It Matters – Signals for Australia’s Capital Markets and AI Funding
The collapse removes what would have been a rare tech-heavy listing from an ASX dominated by banks and miners. Jamie Hannah, deputy head of Investments and Capital Markets at VanEck Australia, called it “a blow to the market.” The episode also highlights investor scepticism toward AI-infrastructure valuations as borrowing costs rise and debt-heavy models face tighter credit.
Conflicting Reports & Gaps – Valuation Discrepancies and Unclear Demand
Media reports differed on the valuation target, citing either A$30 billion after price-cut talks or the original A$44 billion. No public prospectus was released, leaving key details—projected cash-flows, debt-service coverage and the private-round composition—unconfirmed.
Verbatim Quotes
- “Firmus will now pursue capital from the private markets and consider alternative public and private market options.” — Firmus spokesperson
- “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, Blackwattle Investment Partners
- “The Board therefore concluded that proceeding with the Offer was not in the best interests of the Company and its shareholders.” — Guardian Australia
- “The selloff reflects a legitimate derating of the embedded value of its Firmus stake, but the magnitude is overdone,” — Emanuel Ajay Datt, fund manager
- “I’ve never seen an IPO so polarising,” — Jun Bei Liu, lead portfolio manager, Ten Cap Investment