Nvidia-backed data centre firm scraps IPO as AI valuation concerns deepen — SkimNews
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- Firmus scrapped its planned IPO citing "recent market volatility and prevailing market conditions," calling a listing "not in the company or shareholders' best interests."
- The deal would have valued Firmus at more than $30bn (£22.65bn); at least one investment firm told the BBC it declined to participate over valuation concerns.
- UniSuper, one of Australia's largest pension funds, also pulled out — CIO John Pearce said the company had a "compelling story" but "not a compelling valuation," and flagged concerns Firmus would need more debt to fund growth.
- Firmus builds liquid-cooled "AI factories" for clients including OpenAI and Meta, with operations across Australia, Singapore and other parts of the Asia-Pacific region.
- Backed by Nvidia, Blackstone and Jane Street, Firmus said it will now pursue capital from private markets and consider alternative listing options.
- The Australian Securities Exchange loses a flagship AI listing at a time when the country already hosts more than 160 data centres and Sam Altman has publicly flagged Australia's potential as a data centre leader.
Why it matters: The Australian Securities Exchange loses a potential $30bn+ flagship AI listing after institutional anchor investors refused to buy in at the asking price. UniSuper's reasoning — a "compelling story, not a compelling valuation" — captures a widening buyer-side skepticism about AI infrastructure pricing that now has a name attached to it.
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