Firmus cancels IPO and turns to private funding

Australian AI data centre operator Firmus has withdrawn its planned IPO, citing market volatility and offering conditions. The Nvidia-backed company now plans to seek capital in private markets.

The board concluded that the proposed terms did not adequately reflect the strength of the business and its long-term growth prospects. In a statement to CNBC, Firmus said proceeding would not be in the interests of the company and its shareholders. It will also consider alternative public and private market options.

CNBC reported a planned raise of about US$5 billion at A$11 a share, implying a valuation of roughly US$30.6 billion. Those figures described the proposed transaction, rather than funds already received.

In August, Firmus announced a US$2 billion round backed by Nvidia, Coatue Management, Blackstone and Jane Street. That brought equity raised over the preceding year to more than US$3 billion and its valuation to over US$10.5 billion.

The company announced September agreements to supply Meta with GPU capacity in Southeast Asian data centres built on Nvidia's DSX platform. The capacity is intended for Meta's AI research, model development and training. The IPO withdrawal changes Firmus' financing route and is not an announced cancellation of those agreements.