Fund managers warn Firmus valuation unjustified for unprofitable AI firm
Firmus seeks a $43.1 billion ASX listing despite never posting profit.
AI and data centre company Firmus plans to list on the ASX later this month at a $43.1 billion valuation, despite never making a profit and being unlikely to for several years. The firm is raising $US5 billion ($7.2 billion) which would make it one of Australia's top twenty companies by value.
Founded as a bitcoin miner in 2019, Firmus now operates data centres that provide computing power to companies like Meta and OpenAI. Fund managers are sceptical, questioning whether the company's ambitious growth forecasts justify the price.
Firmus currently runs two data centres and plans to build five more in Malaysia and Indonesia at a cost of $US37.7 billion. Last financial year it posted a loss of $US68.2 million on revenue of $US50.8 million.
Backed by Nvidia and investment group Blackstone, Firmus forecasts massive earnings if it hits its targets by 2029.
- $43.1 billion
- IPO valuation
- $US5 billion ($7.2 billion)
- Capital being raised
- $US68.2 million
- Last year's loss
- $US50.8 million
- Last year's revenue
Why it mattersThe listing tests whether investors will back an expensive, unprofitable company betting on AI growth, or whether the valuation collapses after launch.
AustraliaAustralian super funds and investors will need to decide whether to buy into Firmus shares, with fund managers warning the price looks overblown relative to the company's unproven track record.
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