Firmus Technologies Considers Slashing IPO Price Amid Weak Demand
Firmus Technologies is considering reducing its IPO share price to $9 or canceling the listing entirely due to tepid international investor support.
AI data center developer Firmus Technologies is considering reducing its initial public offering price from $11 to $9 per share or aborting its planned listing on the Australian Securities Exchange entirely. A price reduction to $9 would lower the company's market capitalization to approximately $35.8 billion and reduce total funds raised by $1.3 billion. The company is reportedly lobbying Nvidia Corporation for additional financial support to maintain the listing, which was tentatively scheduled for October 23.
Originally valued at nearly $44 billion, the company has faced criticism for a valuation that surged from $1.85 billion in just over a year despite significant losses. Investors have raised concerns over operational risks, noting that 97% of contracted revenue from clients including Meta, OpenAI, and Nvidia Corporation is tied to facilities that have not yet been built. Firmus Technologies plans to spend $51.71 billion to develop 865MW of compute capacity across Australia, Indonesia, and Malaysia over the next two years.
Recent setbacks include the dissolution of a partnership with Caisse des dépôts et consignations regarding Project Southgate, an AI data center initiative. Co-CEO Oliver Curtis confirmed the companies parted ways, while CDC founder Greg Boorer cited misalignment. Additionally, Firmus Technologies abruptly withdrew from a federal parliamentary inquiry into artificial intelligence on Thursday as it attempts to save the IPO.
