Australian data-centre company Firmus has abandoned a share sale that would have been the biggest ASX float since Telstra in 1997. Large investors balked at its proposed valuation and the gap between planned capacity and operating facilities.
Firmus planned to raise up to A$7.9 billion at a valuation of about A$43.7 billion. It builds data centres equipped with Nvidia chips and rents computing capacity to Meta, OpenAI and other customers. Of the 912 megawatts of capacity it has contracted with customers, 46 megawatts are operating, about 5 per cent. The company withdrew the offering on Friday after large investors refused to buy at the proposed price.
Firmus operates data centres in Melbourne and Singapore. Seven more are contracted and four are in planning. Unlike operators that mainly lease space and power, Firmus owns its accelerators. Much of the infrastructure described in its plans has yet to be built, leaving investors to fund future capacity rather than an established network.
The withdrawal followed a rapid rise in the company's valuation. Firmus sought a A$1.2 billion valuation in late 2024 and raised capital at A$15 billion in August. For the IPO, it proposed A$11 a share. Banks later discussed lowering the price to about A$9, but the offering was ultimately cancelled. ABC reported the company would now consider private capital. Firmus had also confirmed the end of a partnership with Australian data-centre operator CDC. The developments raised questions about the company's growth plans, though they do not by themselves establish that investment in AI is ending.