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Firmus Drops IPO Share Price Amid Weak Demand
Bankers are trying to salvage the listing after investors balked at a price that implied a $43.7 billion valuation.
- On Thursday, Firmus faced critical IPO pricing struggles as investors questioned the startup's aggressive $44 billion valuation. Bankers scrambled to save the listing after shares were offered around $8 on Wednesday, down sharply from the initial $11 target.
- Founded in 2019 by Jonathan Levee, Tim Rosenfield, and Oliver Curtis, Firmus pivoted from cryptocurrency to AI infrastructure. Although the company raised $2 billion in August at a post-money valuation exceeding $10.5 billion, investors now criticize the ambitious $44 billion listing target.
- Investors fear existing shareholders could flood the market, as major backers including Nvidia, Blackstone, and Coatue Management remain unrestricted by escrow agreements. Skepticism also stems from operational capacity: Firmus operates only two data centers despite multibillion-dollar expansion plans.
- Bankers attempted a last-ditch effort to salvage the IPO following weak demand from local and international investors. Firmus recently terminated its Project Southgate collaboration with CDC Data Centres, fueling broader concerns about aggressive spending amid the pricing crisis.
- The company is set to publish its IPO prospectus on October 12, ahead of its planned Australian Stock Exchange debut on October 23. Other neoclouds, including UK-based Nscale and Lambda, are attempting to float shares in the coming months globally.
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13 Articles
13 Articles
Why Investors Are Skeptical Over Australian Data Center Company Firmus's IPO
Nvidia-backed data center company Firmus's IPO, set to be among the biggest listings in Australia, has become "unusually polarizing," Australian portfolio manager Jun Bei Liu of Ten Cap says. (Source: Bloomberg)
·New York, United States
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Sydney Morning Herald+3 Reposted by 3 other sources
Firmus float in trouble as investors don’t buy the hype
The Australian data centre operator’s blockbuster landing on the Australian sharemarket is on thin ice as its bankers pull out all stops to convince sceptical buyers.
·North Sydney, Australia
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Crypto BriefingReposted by 
Cryptocurrency News | Cryptocurrency Prices | Market Cap
Cryptocurrency News | Cryptocurrency Prices | Market CapFirmus IPO stumble puts a dent in the neocloud boom
Firmus Technologies cut its IPO price by 25% after seeking an A$44 billion valuation, raising fresh questions about neocloud and AI valuations.
Coverage Details
Total News Sources13
Leaning Left3Leaning Right2Center3Last UpdatedBias Distribution38% Left, 37% Center
Bias Distribution
- 38% of the sources lean Left, 37% of the sources are Center
38% Left
L 38%
C 37%
R 25%
Factuality
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