Firmus IPO price faces 18% cut as investors balk at AI valuation
The AI infrastructure company may cut its IPO price to $9 a share. Its valuation would drop from $44B to about $35B.
Firmus Technologies faces pressure to cut its IPO price. Investors question its $44 billion valuation, unproven business model, and ambitious AI data-centre expansion plans.
Firmus had planned to raise $US5 billion from investors at $US11 per share. Lack of demand at that price could force its investment banks to lower the share price.
Market speculation suggests the offer price could fall to $9 per share. This would be an 18 per cent cut.
At that price, the company would be worth a little over $US25 billion, or about $35 billion. Even at the lower price, this listing would be Australia's largest IPO since Telstra in 1997.
Investors have criticized Firmus's limited operating history, unclear plans to build cheaper data centres, and loss-making status. The company forecasts $5.8 billion in operating profit by 2029 if it successfully builds seven data centres across Australia, Indonesia and Malaysia.
- $US11
- Original share price
- $9
- Proposed share price
- 18 percent
- Price reduction
- $44 billion
- Original valuation
Why it mattersIt signals investor doubt about AI company valuations. It raises questions about whether speculative tech firms can justify their price tags, even amid AI hype.
AustraliaA repriced IPO signals Australian investor skepticism about AI infrastructure growth and may reshape how Australian markets price emerging-tech listings.
✓ Claims checked against the source and corrected before publish. checked 3 h ago
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