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Firmus scraps its planned 44 billion Australian dollars Australian listing after weak investor demand

Firmus, the Nvidia-backed Australian AI data-centre operator, withdrew its application to list on the Australian Securities Exchange on 9 October, citing market volatility. It had targeted a valuation of about 44 billion Australian dollars at 11 Australian dollars a share. The company now plans to seek private funding while weighing other options. The offer would have been Australia’s biggest stock-market debut since Telstra in 1997.

Economics & Markets··Midday
Cooling units and pipework outside a data-centre building.

Firmus withdraws its stock-market application

Firmus, an Australian operator of AI data centres, withdrew its application to list on the Australian Securities Exchange on 9 October. The company cited recent market volatility and conditions, saying the proposed offer would not appropriately reflect its long-term growth prospects. A Firmus spokesperson said the board decided that proceeding was no longer in the best interests of the company and its shareholders.[1], [2]

Founders and co-chief executives Oliver Curtis and Tim Rosenfield had targeted a valuation of about 44 billion Australian dollars, with an initial proposed price of 11 Australian dollars a share. The offer would have been the biggest debut on the Australian stock market since the telecoms giant Telstra in 1997, but investor demand failed to materialise.[1], [2]

Private funding replaces the public offering

Firmus says it now intends to pursue private-market funding while considering other options. A day earlier, reports had described consideration of a smaller offering at 8.25 Australian dollars a share. Nvidia, the chipmaker, holds a 7.2 per cent stake.[1]

Firmus’s website describes seven AI data centres across Australia, Singapore, Indonesia and Malaysia. Two, in Australia and Singapore, are operational; five are under development, with a target of readiness within 24 months.[1]

Investors questioned the valuation and the borrowing model

John Pearce, chief investment officer of the Australian pension fund UniSuper, called the business story compelling but said the valuation did not justify a direct investment, and he worried that expansion would need extra debt and equity. Lochlan Holloway, a strategist at the research firm Morningstar, also pointed to leverage, describing a model of borrowing against customer contracts to buy chips and repaying the loans from rental income.[1]

References

  1. News sourceABC NewsFirmus withdraws its Australian stock-market float↩1↩2↩3↩4↩5
  2. News sourceThe GuardianFirmus scraps its Australian stock-market listing as investor demand fails↩1↩2
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