Firmus is a builder, owner and operator of vertically integrated “AI factories”, which, thanks to their “HyperCube” technology, can reduce water and energy costs dramatically compared to standard data centres.
The company was looking to go public, with an ASX IPO of $44 billion, with an offer of $11-a share, which would have been the biggest ASX float since 1997, when Telstra achieved a similar $43.7 billion.
However, the offer was rejected by institutional investors and major superannuation funds, which felt that the offer was far above what the company was actually valued at.
Board bankers priced the shares at $11 based on an aggressive projection of growth, citing US$12.9 billion in revenue by 2029.
Firmus generated US$50.8 million in FY2025–26 fiscal, meaning a $44 billion valuation would have been asking investors to buy in at around 600 times that revenue.
To achieve that expected 2029 revenue, Firmus would need a growth rate of 25,300 per cent in just three years. Additionally, the data centre capacity it was banking its IPO on, was pointed out to be 90 per cent unbuilt.
In an attempt to salvage the deal, Firmus’ bankers from Morgan Stanley, JP Morgan and Bank of America tried a lower share price of $8.25 to try and generate enough backing.
However, the deal fell through.
Now, Firmus has said it will attempt a Nasdaq listing next year and is planning to try and land another round of private investment from existing investors, including chip manufacturing giant Nvidia.
Firmus co-chief executives Tim Rosenfield and Oliver Curtis said current market conditions were to blame for the failure.
“As with any public offering, investor demand is only one factor in determining whether a transaction should proceed.
“The board also considered valuation, transaction structure, market conditions and the composition of the shareholder register in deciding whether to proceed with the offer.
“Importantly, nothing has fundamentally changed about the business. Our strategy remains unchanged, our customer momentum remains strong, and our long-term growth opportunity continues to expand.
“We are building and operating world-class AI infrastructure, supported by a differentiated technology platform, growing customer demand and a highly capable team.”
On Friday, Firmus also announced it had withdrawn the plans for an ASX listing.
“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,” the company said.
“The board therefore concluded that proceeding with the offer was not in the best interests of the company and its shareholders.”
Still, the two both back the technology, citing excitement from OpenAI and Meta. The company rents Nvidia chips to both tech giants, both of which have praised the innovation and cooling capabilities of HyperCube.
This story was originally published by Cyber Daily’s sister brand, Banking Daily.
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