Nvidia-backed Firmus cancels $5bn Australian IPO, turns to private funding

Australian AI data centre operator Firmus has withdrawn its planned US$5 billion initial public offering on the ASX, citing market volatility and conditions that would not reflect the company's long-term value. The board concluded proceeding was not in the best interests of the company or its shareholders.

The IPO, which would have been Australia's second-largest listing after Telstra in 1997, initially targeted a $43.7 billion market capitalisation at $11 per share. Reports indicated advisers were considering cutting the valuation to roughly $30 billion and reducing fees to salvage the deal.

“The terms on which the Offer could proceed would not appropriately reflect the strength of the Company's business and long-term growth outlook.”

Despite backing from major investors including Nvidia, Coatue Management, Blackstone, and Jane Street, the book-build failed to translate indicative interest into firm commitments. Offshore demand came in weaker than anticipated, prompting last-minute price reduction talks.

Firmus now plans to pursue capital from private markets and explore alternative public and private options to fund its $51 billion plan to build five AI data centres across Malaysia, Indonesia, and Australia by 2028. The company currently operates only two leased centres in Melbourne and Singapore.

The withdrawal follows community opposition in Tasmania, where Firmus seeks 444 megawatts of power for three proposed facilities. September polling showed a majority of Tasmanians oppose AI data centres in the state, with women and younger people leading the pushback.

Investor scepticism centred on the valuation jump from $10.5 billion in August to over $30 billion despite an unproven track record in building AI factories. Portfolio manager Joseph Koh noted the price tag assumed near-flawless execution for projected US$5 billion annual earnings by 2028.