Firmus, an artificial intelligence data centre company backed by Nvidia, has withdrawn its application to list on the Australian Securities Exchange, abandoning what would have been one of Australia's largest-ever initial public offerings.
The firm cited "recent market volatility and prevailing market conditions" as the reason for shelving its public debut, stating that proceeding with the listing would not serve the interests of the company or its shareholders. According to Investor Daily, Firmus's board determined that the proposed offer terms were inadequate to reflect the business's strength and long-term growth outlook.
The proposed offering was expected to raise approximately A$7 billion (about US$5 billion), with shares priced at A$11, implying a US$30.6 billion equity valuation. According to , this valuation represented nearly three times the US$10.5 billion valuation the company received after its August funding round, a dramatic increase in just two months that raised concerns among potential investors.
Firmus reported US$51 million in revenue for the 2026 financial year, according to Straits Times reporting on the IPO's cancellation. The company had been scheduled to begin trading on the Australian Securities Exchange on 23 October.
One investment firm told a national broadcaster that it had decided not to participate in the initial public offering over concerns about the company's valuation. UniSuper, one of Australia's largest pension funds, was among the institutional investors that chose not to take part in the offering.
We think that Firmus indeed has a compelling story. It just doesn't have a compelling valuation.
John Pearce, UniSuper's chief investment officer, made this assessment in an update to investors. He also expressed concern that Firmus would need to accumulate additional debt to finance its expansion plans.
It's disappointing. The [Australian Securities Exchange] needs new stories and this could have been one if it was correctly priced.
Pearce told a national broadcaster that the exchange would have benefited from the listing had the pricing been more appropriate.
What does Firmus do?
Firmus designs and operates liquid-cooled data centres, which the company refers to as "AI factories", serving major clients including OpenAI and Meta. The company maintains operations across Australia, Singapore and other Asia-Pacific locations. Its financial backers include Nvidia, Blackstone and Jane Street, two of the world's most prominent investment firms.
Why did the valuation become controversial?
The tripling of Firmus's valuation in just two months sparked significant debate among investors about whether the company's asking price was justified. The jump from US$10.5 billion following the August funding round to US$30.6 billion at the proposed IPO price raised questions about the sustainability of such rapid value growth. In August, Firmus had announced a US$2 billion funding round backed by Nvidia, Coatue Management, Blackstone and Jane Street, bringing its total equity raised over the preceding year to more than US$3 billion.
What is driving broader concerns about AI investment?
The decision by Firmus to abandon its listing reflects wider investor caution about the hundreds of billions of dollars flowing into artificial intelligence as questions persist about long-term profitability and return prospects. In September, OpenAI's chief executive Sam Altman stated that his company did not intend to pursue a stock market listing this year, citing concerns about the technology's safety that make it "an ill-advised moment" to go public.
OpenAI and rival Anthropic have both been considering blockbuster stock market debuts that would value each firm at more than US$1 trillion. However, investor enthusiasm for AI-related stocks has shown signs of cooling. AI-focused stocks including Nvidia and Oracle declined in US trading following reports that OpenAI's revenues were lower than previously anticipated.
What happens next?
Firmus stated that it will pursue capital from private markets and evaluate alternative public and private market options. The company said it would furnish shareholders with additional information as those options develop.
Key Facts:
- Firmus withdrew its ASX listing application, abandoning a proposed US$30.6 billion valuation and A$7 billion fundraising
- The company's valuation nearly tripled in two months, from US$10.5 billion in August to US$30.6 billion at the proposed IPO price
- Firmus operates liquid-cooled data centres serving OpenAI, Meta and other major AI clients across the Asia-Pacific region
- The company reported US$51 million in revenue for the 2026 financial year
- The withdrawal reflects broader investor concerns about valuations and profitability in the rapidly expanding AI sector
