Firmus has abandoned its planned US$5 billion initial public offering after investors balked at a valuation that nearly tripled in under two months, underscoring growing scrutiny of AI infrastructure financing even with heavyweight backing from Nvidia, Blackstone, Coatue Management and Jane Street.
The Australian data-centre operator had marketed shares at A$11 each, implying an equity valuation of about US$30.6 billion. That compared with a US$10.5 billion valuation in an August funding round, and earlier reported milestones of US$1.85 billion in September 2025 and US$5.5 billion in April 2026. Nvidia owns a 7.2% stake. Firmus blamed market volatility and said it would pursue private capital instead, claiming the IPO terms “did not correctly reflect the strength” of its business.
Investor pushback centred on execution risk. UniSuper chief investment officer John Pearce said Firmus had “a compelling story” but “doesn’t have a compelling valuation,” calling the offer “priced to perfection.” Blackwattle Investment Partners portfolio manager Joseph Koh said investors were being asked to pay a large price for future outcomes assuming “near flawless execution.” Firmus reportedly contemplated lowering its IPO price to A$8.25 before scrapping the listing.
Firmus currently operates two leased data centres in Melbourne and Singapore, with five more planned across Asia-Pacific. Minotaur Capital co-founder Armina Rosenberg noted that about 97% of contracted revenue was linked to sites that had not yet been built. Morningstar strategist Lochlan Holloway warned the neo-cloud model is “heavily geared,” with estimates suggesting Firmus could carry US$30 billion in debt against expected operating income of US$5 billion in 2028.
The retreat highlights broader caution as investors demand clearer evidence that AI infrastructure spending will convert into durable cash flow. It also revived attention on co-CEO Oliver Curtis’s previous insider-trading conviction, though the company’s decision ultimately focused on pricing and shareholder value.
