Nvidia-Backed Firmus Scraps $5B Australian IPO, Seeks Private Funding
Firmus, the Australian data-center developer backed by Nvidia, abandoned a planned US$5 billion initial public offering on October 9 after weak investor demand, turning to private funding to support its expansion in AI infrastructure.
The company withdrew its application to list on the Australian Securities Exchange, citing market volatility and saying the offer terms failed to reflect its long-term growth prospects. It had sought a valuation of about A$44 billion at A$11 a share.
The withdrawal comes just two months after Firmus announced full commitments for a US$2 billion private equity round. Nvidia and Coatue participated alongside Blackstone funds and Jane Street. That transaction valued the business at more than US$10.5 billion after the investment and brought new equity raised over the preceding year to more than US$3 billion, the company said.
The proposed IPO valuation was roughly US$30.6 billion, nearly three times the August level. Investor concerns included construction risk and the potential for existing shareholders to sell more than half the stock immediately after listing. Questions also arose after CDC Data Centres said a planned 1.6-gigawatt development partnership with Firmus was no longer proceeding.
Much of Firmus’s planned capacity remains to be built. ABC reported that its portfolio included two operating sites in Australia and Singapore, with five others under development and targeted to enter service over the next two years. That leaves prospective investors assessing a business whose expansion depends on completing facilities and bringing computing capacity into operation.
Firmus has also turned to private credit to finance construction. In February, it announced a US$10 billion debt facility led by Blackstone funds and supported by Coatue. The financing was intended to fund Project Southgate, an Australian infrastructure program the company then expected to reach as much as 1.6 gigawatts through 2028. The facility announcement did not establish that the entire amount had been drawn.
Firmus will now consider international public-market options alongside private capital. Reuters, citing a person involved in the transaction, reported that a private round could be followed by a Nasdaq listing.
