Firmus, the Nvidia-backed Australian data centre operator, has pulled plans for a stock market listing that would have valued the company at more than $30bn. The withdrawal follows weak investor demand and growing scrutiny of AI infrastructure valuations, and comes as Nvidia and other chip stocks slide on doubts about AI spending returns.
Firmus has abandoned plans for a stock market debut that would have ranked among Australia's biggest-ever listings, pointing to volatile markets and prevailing conditions as the reason to step back. The company had initially targeted a valuation of more than $30bn (£22.65bn).
Investors balk at the price tag
Firmus builds and operates liquid-cooled data centres, described as "AI factories," for clients including OpenAI and Meta, with operations in Australia, Singapore and other parts of the Asia-Pacific region. Its backers include Nvidia and major investment firms Blackstone and Jane Street.
UniSuper, one of Australia's biggest pension funds, was among the institutional investors that chose not to take part in the offering. Chief investment officer John Pearce said the pricing did not match the company's story, adding that Firmus would likely need to take on more debt to fund its growth plans.
According to Rayliant Investment Research: Phillip Wool, the firm's chief research officer, said investing in Firmus at this stage is "more like a bet on a dream".
A retreat to private markets
Firmus plans to pursue capital from private markets and consider alternative options rather than proceed with the public offering. The deal had been pitched at a $5 billion offering size, and a person involved in the transaction said it would be followed by a Nasdaq listing, though Firmus declined to comment on that plan.
The pulled deal has also rattled related stocks. Shares of Maas Group, which holds a 3.2% stake in Firmus, fell nearly 11% after the withdrawal.
Wider AI valuation jitters
The retreat lands as investors and analysts raise concerns about the hundreds of billions of dollars being poured into AI, with long-term returns still unclear. Nvidia and Oracle fell in US trading on Thursday after reports that OpenAI's revenues were lower than previously thought.
Australia has become an attractive destination for data centre investment, with more than 160 data centres already operating in the country and plans for more.
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