Firmus, the Sydney-based AI infrastructure startup backed by Nvidia, Blackstone, Coatue and Jane Street, abruptly cancelled a planned IPO of about $5 billion on the Australian Securities Exchange. Shares were reportedly priced at A$11, and the deal would have been Australia's second-largest new share sale. The company says it will now seek private capital and weigh other options.
Investors questioned a proposed $30.6 billion valuation, nearly triple the level of two months earlier, when Firmus raised $2 billion at a valuation above $10.5 billion. Reuters reported that only 42 MW of a planned 1 GW capacity was operational, and concerns also covered financing needs, construction risks and the terms offered to existing shareholders.
Firmus runs data centers in Melbourne and Singapore, with five more under development and over 900 MW of contracted capacity, much of it still being built. Meta and OpenAI are among its customers. The withdrawal is a sign that investors are scrutinizing AI infrastructure valuations that run well ahead of revenue-generating capacity.