Nvidia-Backed Data Centre Firm Firmus Cancels Plans for Stock Market Listing

Artificial intelligence data centre company Firmus has canceled plans for what would have been one of Australia's largest stock market listings. The company cited recent market volatility and current market conditions for the decision, stating that going public would not serve the best interests of the firm or its shareholders. Firmus had previously planned an initial public offering that valued the company at more than thirty billion dollars, or twenty-two point six five billion pounds.

Reactions

Several investors expressed hesitation regarding the high valuation and future financial needs of the company. Australian pension fund UniSuper decided not to participate in the offering. UniSuper chief investment officer John Pearce stated that while the company has a compelling story, the valuation was not compelling and the firm would likely need to take on more debt to grow. Rayliant Investment Research chief research officer Phillip Wool noted that investing in Firmus feels like a bet on a dream due to its early stage and need for large loans. Blackstone declined to comment on the matter.

Context

Firmus builds and operates liquid-cooled data centres for clients such as OpenAI and Meta, with operations spanning Australia, Singapore, and the wider Asia-Pacific region. Its backers include chipmaker Nvidia along with investment firms Blackstone and Jane Street. Australia has grown as a hub for data centre investments due to its land, natural gas, and clean energy supplies, though the industry also faces some local resistance over noise and environmental impact.