Nvidia-backed Firmus pulls ASX IPO, turns to private capital

Firmus, the Nvidia-backed Australian builder of AI data centers, withdrew its application to list on the Australian Securities Exchange on Friday, Sydney time, scrapping an initial public offering that Reuters reported would have raised about US$5 billion.

“Firmus will now pursue capital from the private markets and consider alternative public and private market options. We will provide additional information to shareholders as those options progress,” the company said in a statement carried by InvestorDaily and the BBC.

“Having considered recent market volatility and prevailing market conditions, the board determined that the terms on which the offer could proceed would not appropriately reflect the strength of the company’s business and long-term growth outlook,” Firmus said, as quoted by Bloomberg.

The offer had been marketed at A$11 a share, giving Firmus an equity value of US$30.6 billion, nearly triple the US$10.5 billion valuation from a funding round in early August, Reuters reported. Firmus had sought as much as US$5.5 billion, including an overallotment option, and had US$51 million in revenue in its 2026 financial year, Bloomberg reported. It had built 46 megawatts of a 912-megawatt pipeline, according to investor documents seen by Bloomberg. Trading had been due to start Oct. 23, Reuters had reported.

Pricing came under pressure as investors worried about the company’s debt, and some balked at escrow terms that would have let existing holders sell more than half the stock from day one, Reuters reported.

Firmus’ backers include Nvidia, Blackstone, Jane Street and Coatue, and the company counts Meta and OpenAI as customers. Nvidia holds a 7.2% stake, Forbes Australia reported. Blackstone declined to comment to the BBC, which said Nvidia and Jane Street had been contacted.

Australian pension fund UniSuper sat the offer out. “We think that Firmus indeed has a compelling story. It just doesn’t have a compelling valuation,” John Pearce, its chief investment officer, said in an investor update, the BBC reported.

Supplier and shareholder Maas Group Holdings said in an ASX filing that its JLE unit has received Firmus work orders totaling about A$1.1 billion and Maas has been paid A$373 million.

What’s next

Firmus is exploring a private round of US$2 billion to US$3 billion with existing investors, Bloomberg reported, citing unnamed people. Firmus declined to comment on its funding plans, according to Reuters.

A U.S. listing is unconfirmed. A person involved in the deal told Reuters the private round would be followed by a Nasdaq listing, and The Australian reported plans to list on Nasdaq next year, according to The Sydney Morning Herald. Firmus declined to comment to Reuters on Nasdaq.

The Herald also reported that a funding deal entitles Nvidia, Blackstone and Coatue to extra shares if Firmus has not listed by Nov. 30.

— Nico Valdez