Firmus, an emerging player in the artificial intelligence data centre sector, is reportedly preparing for an initial public offering (IPO) on the Australian Securities Exchange (ASX) valued at approximately $4 billion, with market speculation placing the company’s valuation near $15 billion. While the company has not officially confirmed these figures, sources familiar with the matter indicate that the IPO prospectus will be released shortly.
The planned offering aims to attract both domestic retail investors and international capital. Industry insiders suggest that raising $4 billion exclusively from Australian investors is unlikely, and the company would probably need to secure around $3 billion from overseas investors to meet its funding target. Key participants expected to back the IPO include major lender Blackstone, which has a $10 billion stake in Firmus, and supplier Nvidia, though the company has kept its customer base largely undisclosed. There have been unconfirmed reports linking Facebook (Meta) as a potential early client.
Firmus is benchmarking its valuation against similar U.S.-based cloud computing companies such as CoreWeave, Nebiusa, and Iren, targeting an enterprise value roughly 15 times its forecasted earnings before interest and tax (EBIT). While the company has not publicly disclosed its forecasted EBIT, reports suggest it anticipates generating at least $4 billion annually from operations. A recent $29 billion equity placement reportedly valued Firmus at around $15.5 billion.
The IPO roadshow has seen an increased focus on retail participation, with five additional retail brokers recently brought on board, including Bell Potter, CommSec, and Ord Minnett. This move follows a reportedly lukewarm reception from Australian institutional investors during preliminary meetings earlier this year. Retail brokers face a challenge, however, as Firmus has provided limited information ahead of the prospectus release, and some remain cautious due to recent market experiences such as the troubled debut of the 2024 Digi-Co data centre listing.
Firmus’s competitive edge lies in its claim that it can construct AI-focused data centres at nearly half the industry standard cost—approximately $8.4 million per megawatt compared to more than $14 million by competitors like NextDC. Nonetheless, industry experts remain skeptical, noting that Firmus’s Tasmanian facility is yet to be completed and that its Melbourne data centre only began operations in late July.
The company also faces reputational scrutiny due to the background of co-founder and CEO Oliver Curtis, who previously served jail time for insider trading. Curtis has recently been required to demonstrate to the Australian Securities and Investments Commission (ASIC) that he is fit and proper to lead the business, a process reportedly now concluded.
Despite these concerns, investor interest appears buoyed by the broader enthusiasm surrounding AI technology, as stakeholders look for exposure to the expanding Australian AI infrastructure sector. Firmus is reportedly targeting the first week of October for its listing but remains flexible, with a November IPO considered the latest possible date. The company is in the process of lodging its prospectus with ASIC and is working with advisers Morgans and Highbury Partnership, as well as global banks Bank of America, JPMorgan, and Morgan Stanley, to manage the transaction.