Key Points
- Firmus, a data centre developer backed by Nvidia, has withdrawn its ASX listing application.
- The company had hoped to raise $7 billion at a valuation of $44 billion, but ultimately decided to seek funding from private markets.
- Firmus' IPO collapse highlights concerns over the company's revenue growth and valuation.
What Happened to Firmus' $44 Billion IPO
Firmus, a data centre developer backed by Nvidia, had hoped to raise $7 billion at a valuation of $44 billion through an ASX listing. However, the company ultimately decided to withdraw its listing application after failing to attract sufficient investor interest.
The decision to withdraw the listing was likely due to concerns over Firmus' revenue growth and valuation. The company's contracted revenue is in the billions, but it only starts to collect that once its facilities are live. Annual revenue for last year was $50 million, which is a relatively modest figure compared to the company's proposed valuation.
Firmus' bankers opened its book to investors on Tuesday, offering the company up for $11 a share. However, there wasn't enough interest from local super funds and fund managers, meaning they would either have to cut the price of their shares or walk away from the float.
At a Glance
| Main Company | Firmus data centre developer |
| Main Executive | Oliver Curtis co-founder and CEO |
| Organization | Nvidia backer and investor |
| Regulator | ASX listing regulator |
| Location | Australia headquarters and listing location |
| Industry | data centre development Firmus' primary business |
| Key Product/Service | AI factories Firmus' flagship product |
| Key Technology | Nvidia GPUs Firmus' primary technology partner |
Where the Sides Stand
Jun Bei Liu (Ten Cap)
Position: Firmus' valuation is too high
Role in the story: analyst
Motivation: stated
Oscar Oberg (Wilson Asset Management)
Position: Firmus' long-term prospects remain strong
Role in the story: investor
Motivation: stated
Behind the Scenes: Why Firmus' IPO Collapsed
Behind the Scenes: Why Firmus' IPO Collapsed
Firmus' relationship with Nvidia is a key factor in its valuation. The chipmaker has invested heavily in the company, and its backing has given Firmus a leg up in procuring Nvidia's AI chips. However, this relationship also raises concerns over the company's dependence on a single technology partner.
The scale of Firmus' proposed operations is also a major factor in its valuation. The company has 46 MW of operational capacity, 865 MW under development, and a huge 3.2 GW between planned capacity and growth rights. This is a significant expansion of the company's existing operations, and it raises questions over its ability to deliver on its growth prospects.
What's Next for Firmus and Its Investors
What's Next for Firmus and Its Investors
Firmus has decided to seek funding from private markets instead of pursuing a listing on the ASX. This decision highlights concerns over the company's revenue growth and valuation.
Investors who had hoped to participate in Firmus' IPO will need to reassess their investment strategy. The company's valuation is likely to be re-evaluated in the coming months, and investors will need to consider whether the company's growth prospects justify its current valuation.
Risk & Opportunity Assessment
| Commercial Risk | High | Firmus' revenue growth and valuation are uncertain |
| Competitive Risk | Medium | Firmus is dependent on a single technology partner, Nvidia |
| Regulatory Risk | Low | Firmus is subject to regulatory oversight, but this risk is relatively low |
| Reputation Risk | Medium | Firmus' co-founder, Oliver Curtis, has a history of insider trading |
| Technology Disruption | High | Firmus is dependent on emerging technologies, such as AI and cloud computing |
| Commercial Opportunity | High | Firmus has significant growth potential in the data centre market |
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