Nvidia-backed Firmus scraps $5 billion IPO, seeks private funding as ASX loses listings

Listing pulled on Friday

Firmus, the Nvidia-backed data centre operator, pulled its planned $5 billion initial public offering on Friday. Dealogic data put the deal fourth among global public offerings so far this year, behind SpaceX, CXMT Corp and Cerebras Systems. The company had planned to sell shares at A$11 each, a price that implied a valuation of $30.6 billion, roughly three times the $10.5 billion valuation set in an early August funding round. In its statement, Firmus said "recent market volatility and prevailing market conditions" meant the terms of the offer would not appropriately reflect the strength of its business and long-term growth outlook. Had it listed, the deal would have been the second-largest IPO in ASX history, behind only Telstra's $10 billion flotation in 1997.

Investors split on valuation

Demand weakened once the order book opened for institutional investors this week, according to Handelsblatt, which reported that the company had indicated solid demand only days earlier. Some investors saw Firmus as well placed to benefit from the AI boom, while others worried about the valuation and about existing shareholders flooding the market shortly after the debut. Firmus reported revenue of $51 million in its 2026 financial year, and convincing investors of its sharp rise in value without a proven track record proved to be a further obstacle. Antony Currie, a Reuters Breakingviews columnist, summed up the mood in a column.

Fear of getting screwed has beaten fear of missing out.

Firmus operates two leased data centres in Melbourne and Singapore, with five more planned across Asia-Pacific. Its draft prospectus projected $5 billion in annual profit from its data centres within five years.

What it means for the ASX

VanEck's Jamie Hannah said the ASX has steadily lost listed companies, particularly in infrastructure, to takeovers by private enterprises. The market operator counted 1,891 listed companies in September 2026, down from 2,066 in 2016.

LSEG data show $1.37 billion of new share sales in Australia over the first nine months of 2026, the most since 2021 but well below rival exchanges. Hannah described the lost listing as a blow to the market.

It's a blow to the market, not getting off one of these big listings.

Oscar Oberg, lead portfolio manager at Wilson Asset Management, which has held Firmus shares since last year, acknowledged his firm's early stake.

We owned shares early, I'm not going to hide behind that. But I just think it would have been good for the market to have something new.

Other IPOs shelved this year

Firmus joins a string of 2026 listings that were abandoned, delayed or reworked. Clear Street withdrew its planned US IPO in February after first delaying the deal and sharply cutting its fundraising target. Oura postponed its US IPO in September, having sought up to $2.2 billion in a listing that could have valued it at as much as $15 billion. Holtec Nuclear withdrew its planned US IPO in September, and Bamboo Insurance Services postponed its US offering in late September. Amaero also postponed its US IPO in September, while KNDS put its stock market listing on hold in July until market conditions improve.

Next steps for Firmus

Bloomberg reported that Firmus is exploring a private funding round of as much as $3 billion, with the company and its advisers in talks with existing investors to raise $2 billion to $3 billion. Its backers include Nvidia, Coatue Management, Blackstone and Jane Street. The company now needs other financing routes to keep its expansion plans, including five more data centres across Asia-Pacific, on track.