The planned initial public offering (IPO) of Firmus Technologies, an artificial intelligence (AI) datacentre company, is facing significant challenges just weeks before its anticipated Australian Securities Exchange (ASX) debut scheduled for October 23. Originally touted as a landmark $44 billion float, the offering has encountered tepid investor interest, causing the company and its advisors to consider substantially scaling back the valuation—or potentially canceling the IPO entirely.
Firmus, backed by prominent investors including chipmaker Nvidia, Blackstone, and Wall Street firms Jane Street and Coatue, had seen its valuation soar from approximately $1.85 billion in late 2025 to nearly $44 billion in early October. This rapid escalation was driven by the firm’s plans to develop and operate liquid-cooled "AI factories" equipped with Nvidia graphics processing units (GPUs) designed to capitalize on surging global AI infrastructure demand.
Despite the hype, doubts have emerged about Firmus’s business fundamentals. The company currently operates two relatively small datacentres – one in Melbourne within a CDC-owned facility and another in Singapore – with the majority of its $67.8 billion contracted value tied to sites not yet constructed, particularly in Malaysia, Indonesia, and Tasmania. The company targets $5 billion in annual earnings before interest and tax (EBIT) by 2028, aiming for profit margins that would rival established mining giants. However, this growth is contingent on the timely completion and operation of multiple projects still in development.
Investor concerns were amplified by operational setbacks, including a significant flood in the Melbourne datacentre mid-year, and the revelation that the relationship with CDC, the facility’s operator, had ended quietly. Furthermore, the firm’s co-founder and chief executive Oliver Curtis—who has a past insider trading conviction but was cleared by regulators—reportedly pushed for an $11 share price, equating to a nearly $44 billion valuation, despite indications from bankers that investor demand did not support this level. Pricing discussions reportedly fell to around $8–9 per share, but consensus on an acceptable valuation proved elusive.
Investment banks Morgan Stanley, JPMorgan, Bank of America, and others involved in the float have been working intensively to salvage the offering. Reports suggest that additional support from Nvidia and other strategic investors was sought to underpin the float. Goldman Sachs was also brought in as a last-ditch effort. Nonetheless, the IPO book was closed without a public announcement of the final price, leaving the transaction’s fate uncertain.
Market reaction has been negative; shares in related entities such as Maas Group—an electrical contractor and strategic investor holding significant Firmus shares—plummeted as speculation mounted regarding the IPO’s viability. Institutional investors reportedly grew wary due to limited access to company management, incomplete financial forecasts, and broader concerns over the company’s high debt levels and low current revenue.
Industry analysts and fund managers have characterized Firmus as a risky investment given it has yet to demonstrate the ability to build and operate large-scale data centres at the promised cost efficiencies. While the global investment climate in AI and digital infrastructure remains buoyant, Firmus’s experience underscores investor caution against inflated valuations unsupported by operational track records.
The potential derailment of this high-profile IPO represents a significant setback for Australia’s emerging tech and data centre sector, with experts warning of reputational impacts that may affect future listings in the space. Firmus’s trajectory highlights the complexity of balancing ambitious growth projections with market realities in a rapidly evolving technology landscape. As of late Thursday, the company had not confirmed the status of the IPO, with market participants awaiting further developments.