Firmus valuation simply ‘heroic’

By the Editorial Team · Wednesday, September 16, 2026

Firmus Technologies plans to raise about $7 billion in its upcoming IPO on the Australian Securities Exchange, targeting a market valuation near $50 billion by leveraging demand for AI-focused data centre services. The offering highlights divided investor sentiment, with some seeing growth potential tied to AI infrastructure while others express caution over the high valuation and lackluster performance of domestic comparable stocks.

The upcoming initial public offering (IPO) of data centre firm Firmus Technologies, expected to raise approximately $7 billion and target a market valuation near $50 billion, has sparked a debate among investors about the company's ambitious pricing and prospects. Scheduled to list on the Australian Securities Exchange (ASX) next month, Firmus aims to capitalize on the growing interest in artificial intelligence (AI) infrastructure but faces skepticism from certain market participants.

Firmus, a relatively obscure private company, specialises in energy-efficient data centre operations and focuses on renting computing power to AI-focused clients. Its rapid rise in valuation—from $15 billion in July to the current estimates approaching $50 billion—has drawn attention both for its growth potential and the significant risks involved. The company counts major deals with operators such as OpenAI among its highlights, but it also contends with reputational challenges linked to Oliver Curtis, a top executive previously convicted of insider trading, who remains a billionaire through his stake in the firm.

Investment interest in Firmus is split across different investor groups. Entities such as Geoff Wilson’s WAM Group and Regal Partners hold substantial positions in the upcoming float. However, leading Australian superannuation funds, including AustralianSuper and UniSuper, have opted not to participate. This cautious approach underscores the unease among some institutional investors regarding the IPO’s pricing and the broader data centre sector’s stance on the ASX.

Several investors point to a notable contrast between the performance of ASX-listed data centre stocks and their international counterparts. Established ASX companies like NextDC have traded at prices unchanged over the past three years and currently trade below their consensus price targets, failing to deliver returns comparable to those seen on Wall Street. This discrepancy raises questions about whether Firmus can truly capture the offshore market enthusiasm within the domestic context.

Emanuel Datt, founder of Datt Capital and manager of the Datt Absolute Return Fund, expressed skepticism toward Firmus’s valuation, describing it as “heroic.” He noted that the prior $15 billion valuation already appeared inflated and warned that the proposed $50 billion figure stretches credibility even further. Datt advised caution for retail investors, emphasizing the ample alternative data centre investment options already available on the ASX.

Conversely, others see Firmus’s IPO as a timely entry point for investors eager to tap into the AI trend. Samy Sriram, a market analyst at stockbroker Stake, observed robust and sustained interest in AI-related stocks among clients, many of whom have focused on offshore opportunities. He suggested that sentiment toward AI investments remains strong and showed no signs of softening, indicating potential support for Firmus’s listing.

As Firmus prepares to list, the market will be watching closely to see if the company can justify its elevated valuation in the face of mixed investor appetite and a sector still finding its footing domestically.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.