Firmus May Cut Its IPO Price as Investors Question Its $44 Billion Value
Firmus Technologies may lower its valuation to win over cautious investors or delay its initial public offering altogether, multiple sources briefed on the matter told Guardian Australia. Guardian Australia
The account was published on 8 October 2026, weeks before an expected late-October listing on the ASX, Australia's main stock exchange. An IPO is the first sale of a company's shares to public investors. Firmus also withdrew from a scheduled appearance at a parliamentary inquiry into artificial intelligence.
That possible repricing follows a rapid rise in its private valuation. Firmus was valued at almost $44bn days before 8 October. Just over a year before October 2026, the valuation was $1.85bn. About eight weeks before October, it had reached $15bn.
Earlier deal papers show how quickly the price changed. A term sheet priced IPO shares at A$11 ($7.63) each, implying a $30.6 billion equity valuation, or total value of all shares. Reuters Reuters reported on 2 October that Firmus was preparing a $5 billion IPO at that $30.6 billion valuation, up from $10.5 billion in prior discussions.
Later reporting pointed to a larger raising under pressure. The Australian Financial Review reported that bankers might have to reduce the valuation halfway through a $7.9 billion raising. The Australian Financial Review Separately, The Australian reported an $8 billion cut to the valuation for the float was under consideration amid weak investor demand. The Australian
Firmus raised private capital from investors including Nvidia, Blackstone, Jane Street and Coatue. It has contracts in place with Meta, OpenAI and Nvidia. Its physical footprint is two small operational sites, alongside seven contracted and four planned facilities.
The timetable has shifted across briefings. Reuters, citing a term sheet, reported a 6 October launch for the IPO. Reuters Bloomberg reporting pointed to an ASX debut on 23 October, while earlier briefing material cited 26 October. Bloomberg The most recent guidance describes only a late-October listing.
The broader context here is a collision between private-market speed and public-market caution. A move from $1.85bn to almost $44bn in little more than a year packs several funding rounds into one. Like counting hotel rooms still being built as if guests were already in them, public investors price promised capacity differently from working capacity. Two operating sites against seven contracted and four planned leaves the deal dependent on execution, partners keeping promises, and delivery schedules. Deals with large tech buyers add credibility. They do not remove construction, power, supply-chain or credit risk.
Looking at what this means for the transaction, both options are familiar when listings stall. A valuation cut halfway through a raising resets expectations but can hurt momentum. It signals the order book did not fill at the first price. A delay preserves choice but carries costs. It leaves private backers unable to sell and raises questions about disclosure, governance and parliamentary scrutiny after the withdrawal from the AI inquiry. For Australian markets, the outcome will test demand for AI infrastructure shares where most assets are still prospective and the valuation history moved unusually fast.
