Firmus, the ambitious AI infrastructure company backed by chip-making giant Nvidia, has officially withdrawn its application to list on the Australian Securities Exchange (ASX), effectively scrapping what was slated to be one of the largest share market floats in Australian history.
The company, which builds “AI factories” to support the growing demand for cloud computing, cited recent market volatility and challenging conditions as the primary drivers for the decision. In a statement, Firmus indicated that the proposed initial public offering (IPO) would not have accurately reflected its long-term growth prospects, opting instead to pursue private market funding while weighing alternative strategic options.
“We will provide additional information to shareholders as those options progress,” the company said.
The collapse of the float marks a major blow to founders Oliver Curtis and Tim Rosenfield, who had targeted a $44 billion valuation for the business. Had it proceeded, the IPO would have been the largest on the Australian market since the landmark Telstra float in 1997. However, the proposal faced significant headwinds, with prospective investors cooling on the offer due to a high starting price of $11 per share and widespread concerns regarding a potential artificial intelligence market bubble.
Desperate to rescue the deal, reports emerged yesterday that Firmus and its advisors were considering slashing the IPO size and reducing the per-share price to $8.25. Ultimately, the pivot proved insufficient to win over the market.
Beyond financial concerns, the company faced scrutiny over the background of co-CEO Oliver Curtis, a former investment banker who served time in prison a decade ago for insider trading. This, combined with hesitation from major institutional investors like UniSuper, created an uphill battle for the firm.
UniSuper’s chief investment officer, John Pearce, had publicly expressed doubts ahead of the announcement, noting that while the company’s business model was compelling, the valuation was “priced to perfection.”
“So much has to go right to justify the valuation,” Mr. Pearce said, adding that he was concerned about the company’s need to repeatedly return to the market for further debt and equity to fuel its expansion.
Those concerns were echoed by industry analysts. Morningstar senior market strategist Lochlan Holloway highlighted the aggressive debt-fueled strategy underpinning the business, noting that “neo-cloud” companies often borrow heavily against customer contracts to purchase expensive hardware. By 2028, Firmus expects to carry approximately $43 billion in debt—roughly six times its forecasted operating earnings.
Despite the setback, Firmus maintains a significant global footprint, with seven AI factories either operational or under development across Australia, Singapore, Indonesia, and Malaysia. With Nvidia holding a 7.2 per cent stake in the company, the firm remains a significant player in the Asia-Pacific tech landscape, even as it retreats from the public spotlight to regroup.
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