Nvidia-backed data center provider Firmus scraps $5bn Australian IPO

Australian AI data center firm Firmus has abandoned its planned $5 billion Australian dollar ($3.7 billion) initial public offering (IPO) on the Sydney stock exchange. The decision comes after criticism that the company's valuation was excessively high. Firmus, which partners with Nvidia, was aiming to raise up to AU$7.9 billion ($5.5 billion) in its bid to become the second-largest IPO in Australian history, behind Telstra's listing in 1997.

The company's market valuation would have reached AU$44 billion ($30.7 billion) if the IPO had gone ahead, surpassing the second-largest Australian IPO on record. Firmus operates two data centers in Australia and Singapore, with five more in various stages of development across Australia, Singapore, Indonesia, and Malaysia. The firm has raised over AU$3 billion ($2.2 billion) in equity since its founding in 2019, valuing the company at over AU$10.5 billion ($7.7 billion).

However, market volatility and concerns over the company's growth prospects led to its withdrawal from the IPO process.