Firmus cuts IPO price from $11 to $9 per share
Australia's biggest IPO since Telstra collapses by $11 billion in value as investor demand evaporates.
Firmus, the AI data-centre company, was set to list on the ASX on October 23 at $11 per share, raising about $7 billion and valuing the firm at just under $44 billion. Firmus would have been Australia's largest listing since Telstra went public in 1997.
Firmus is now slashing its asking price to $9 or even $8.25 per share, reports from the Australian Financial Review, Sydney Morning Herald and The Australian revealed just this week. The new valuation cuts to as low as $32.78 billion, a loss of over $11 billion in a matter of mere days.
One report speculated the October 23 launch could be scrapped, though that remains unconfirmed. Firmus, founded by Oliver Curtis and backed by Nvidia and Blackstone, carries about $US30 billion in debt.
Analysts also point out that 97 per cent of the data-centre capacity the company promised remains unbuilt.
- $11 per share
- Original IPO price
- $9 to $8.25 per share
- New IPO price range
- Over $11 billion
- Valuation loss
- $US30 billion
- Firmus debt
Why it mattersFirmus represents one of Australia's few ways for local investors to gain direct exposure to the AI boom. A failed or troubled IPO signals weakness in that sector's fundamentals.
AustraliaAustralian investors hoping to back local AI infrastructure are now facing a much cheaper entry point, or a cancelled float altogether, cutting off one of the rare big-ticket tech plays on the ASX.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
Open this story in InSnip →
