Firmus scraps its $5 billion float as buyers balk, citing market volatility. Australia's biggest AI test goes private
Firmus, the Nvidia-backed AI data-centre operator, shelved its planned initial public offering on Friday, Reuters and iTnews reported. At about $5 billion it would have been the second-largest sale of new shares in Australian history, but demand was lukewarm. Firmus said its board concluded that proceeding was not in the best interests of the company and its shareholders, and that it would pursue private capital and consider other public and private options. The shares were to be offered at $11, a valuation of $30.6 billion in Reuters-based reports, nearly triple the $10.5 billion set in an early-August fundraising; iTnews quoted the valuation in US dollars, so the currency is unconfirmed. Earlier reports this week had the AFR describing dilution clauses in price talks and a cut price of $8.25. Firmus runs two leased data centres, in Melbourne and Singapore, and plans five more in Asia and the Pacific. Channel NewsAsia said the failure was a blow to Australia's shrinking share market.
It was the local test of whether investors will fund the AI build-out at the prices on offer. A private raise keeps the project alive but removes the public price signal, and it makes other planned AI listings harder.
Many super funds would have held some Firmus shares after listing, so nothing changes for your balance. The effect is indirect: weaker appetite for AI floats can weigh on the broader sharemarket and on fundraising by other companies.
The board was right to walk away instead of selling at a price that the market judged too high.
Walking away after weeks of marketing shows how fragile the AI trade is, and it leaves Firmus dependent on private lenders and investors.
Watch for a statement from Firmus on who is funding it and at what valuation. A private round far below $30.6 billion would confirm that the float failed on price. A Nasdaq listing is reported by one source only, and we are not treating it as fact.
DailyDrop Australia edition No. 6 · Morning · SAT., OCT. 10, 2026