Firmus IPO Crashes to $8.25 as Bankers Scramble to Save $43B Float

Firmus Technologies has crashed its IPO price to around A$8.25 per share from A$11, a 25% collapse that wipes A$8 billion from its planned A$43.7 billion valuation. The AI data centre company’s banking syndicate worked overnight to salvage the float after international investors showed little interest. The revised deal now raises roughly A$1.3 billion less than planned, and bankers have cut their own fees. Nvidia, a key backer, is now central to whether the listing survives at all.

The price collapse and what triggered it

Firmus closed its book-build on Thursday morning with the price slashed to A$8.25, down from the original A$11 offer. The Australian Financial Review reported the banking syndicate began price discussions on Wednesday after overseas demand came in weaker than expected. The revised valuation sits at roughly A$30 billion, a 31% cut from the planned A$43.7 billion. Bankers scrambled overnight to keep the float alive as sentiment reversed abruptly.

Why investors are backing away

Firmus is losing money and only 5% of its sold capacity is operational, versus roughly 25% for rival NextDC. Yet Firmus would be valued at about four times NextDC, Australia’s largest listed data centre company. The company has only two data centres running; the rest are in planning or construction. Co-CEO Oliver Curtis, a former investment banker, served time for insider trading a decade ago, adding to investor caution.

Nvidia’s role and the risk of total withdrawal

Firmus lobbied Nvidia for more financial support overnight as the deal deteriorated. Nvidia, Coatee, and Blackstone are major existing investors. Aborting the float entirely is now on the table, with Nvidia’s backing critical to any revival. The company was due to appear before parliament’s AI inquiry on Wednesday but withdrew without explanation, though the IPO crisis provides context.

What happens next

The original IPO was scheduled for October 23. Brokers reported very light interest from offshore investors, with retail bids as low as A$5,000 per stake. Fund managers are being told to prepare for further downward revision. The prospectus, due Thursday, will reveal Firmus’s full financials for the first time, including revenue, debt, and construction costs. If the float proceeds, it will still rank as Australia’s second-largest IPO ever, behind Telstra’s 1997 privatisation.

Final Thoughts

Firmus faces a binary outcome: proceed at a steep discount or pull the float entirely. Either way, the A$8 billion valuation haircut signals that AI infrastructure valuations have peaked, and investors are now pricing in execution risk and competitive pressure.

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