Nvidia-backed Firmus calls off its Australian share float on the morning it was due, citing market volatility

Firmus Technologies, the Australian builder of AI data centres, cancelled its initial public offering on Friday 9 October. The Nightly reported that the float “was dramatically cancelled on Friday morning”, after institutional investors baulked at the valuation. It would have been the second-largest share market float in Australian history, the paper says.

According to The Nightly, the offer had been marketed at $11 a share, which could have valued the company at up to $43.7 billion, with a raise of $US5 billion. On Thursday morning, media outlets had reported that the price had been cut to $8.25 a share and the raise to $US3 billion. The paper says Firmus had persuaded Nvidia to sell it chips and take a stake.

In a statement quoted by The Nightly, the board said: “Having considered recent market volatility and prevailing market conditions, the board determined that the terms on which the offer could proceed would not appropriately reflect the strength of the company's business and long-term growth outlook.” It added: “Firmus will now pursue capital from the private markets and consider alternative public and private market options.” Firmus's own newsroom carries no withdrawal notice, and no ASX notice was found, so the statement is not visible from here in the original.

The cancellation hits ASX-listed MAAS Group, which Reuters described on 8 October as owning 3.2% of Firmus. Firmus's newsroom lists OpenAI as an anchor customer and AI infrastructure agreements with Meta, both announced in September. The withdrawal came the day after the Financial Times reported that OpenAI's annualised revenue was well below the figure previously signalled, a report that sent AI shares lower.

• Reported The Nightly reports Firmus's IPO was cancelled on Friday morning, 9 October, after investors baulked at an offer marketed at $11 a share. The Nightly
• Claimed Firmus's board says market volatility meant the offer terms would not reflect the strength of the business, and that it will pursue private capital. Firmus board statement, as quoted by The Nightly
• Reported Reuters describes MAAS Group as owning 3.2% of Firmus. Reuters, via The Star