Australian Nvidia-backed AI data centre operator Firmus scraps $5 billion IPO

By Scott Murdoch and ‌Christine Chen

SYDNEY, ​Oct ​9 (Reuters) - Australia's Firmus, a data centre operator backed by Nvidia, shelved its $5 billion initial public offering, ‌citing market volatility and conditions, and said it ⁠would opt for a private fundraising round instead.

Firmus' IPO would have ‌been the second-largest new share ‌sale in Australia's history but met lukewarm demand, a warning sign that investors remain selective about AI issuers ​even as the artificial intelligence boom drives global markets.

"Firmus will now pursue capital from the private markets and ⁠consider alternative public and private market options," Firmus said in a statement, adding the ​terms did not correctly reflect the strength of its business and long-term growth outlook.

"The board therefore ​concluded that proceeding with the ‌offer was not in the best interests of the company and its shareholders," Firmus said.

The ⁠company initially planned to sell its shares A$11 each, giving Firmus an equity valuation of $30.6 billion, nearly triple the $10.5 billion valuation ⁠it achieved following a fundraising round at the start of August.

Firmus ​is backed by major AI companies and investors Nvidia, Coatue Management, along with Blackstone's and Jane Street.

The company is an AI-infrastructure and cloud-services ‌company that designs and operates modular AI factories using proprietary energy and cooling technology. ‌It currently only has two online in Melbourne and Singapore. ⁠Five more planned across ‌the Asia-Pacific are in ​early stages of development.

(Reporting by Scott Murdoch, Christine Chen and Renju Jose in Sydney; Editing by Sonali ‌Paul)

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