AI data centre firm Firmus scraps stock market listing

AI data centre company Firmus has scrapped its plans for what would have been one of Australia's largest stock market listings. The company cited "recent market volatility and prevailing market conditions" as reasons for the decision, stating that going public would not be in the best interests of the company or its shareholders.

Firmus had initially planned an initial public offering (IPO) that would have valued the company at over $30 billion. One investment firm told the BBC that it had decided not to participate in the IPO due to concerns over the company's valuation. The firm stated it would now pursue capital from private markets and consider alternative public and private market options.

Firmus builds and operates liquid-cooled data centres, which it terms "AI factories," serving clients including OpenAI and Meta. The company has operations in Australia, Singapore, and other parts of the Asia-Pacific region. Its backers include Nvidia, Blackstone, and Jane Street.

The decision to withdraw from the IPO comes amid growing investor and analyst concerns about the substantial sums being invested in AI and uncertainty surrounding long-term returns. UniSuper, a major Australian pension fund, was among institutional investors that opted out of the offering.

John Pearce, chief investment officer at UniSuper, told the BBC that while Firmus has a "compelling story," its valuation was not compelling. He also expressed concerns that Firmus might need to incur further debt to fund its growth. "It's disappointing. The ASX needs new stories and this could have been one if it was correctly priced," Pearce said.