Nvidia-Backed Firmus Pulls Biggest ASX Float Since 1997

Nvidia-backed Firmus Technologies has scrapped its planned ASX listing, abandoning what would have been Australia's biggest initial public offering since Telstra's 1997 float. The AI data centre operator had offered shares at A$11 each, targeting a valuation near A$44 billion and seeking roughly A$7 billion in new capital, but the board said on 9 October 2026 that "recent market volatility and prevailing market conditions" meant the deal was "no longer in the best interests of the company and its shareholders."

What happened: Firmus withdraws the float of the decade

Firmus builds and operates liquid-cooled "AI factories" for clients including OpenAI and Meta, with facilities across Australia, Singapore, Indonesia and Malaysia. Its backers include Nvidia, Blackstone-managed funds, Jane Street and Coatue. The withdrawal ends a two-day scramble after bankers reportedly overestimated demand, leaving heavyweight investment banks accused of providing misleading information and leaving investors in the dark, according to the Australian Financial Review. Firmus is now expected to pursue private capital and may explore a Nasdaq listing, people familiar with the matter said.

The failed float rattled related stocks: shares in investor Maas Group fell more than 20% as sentiment soured. Veteran datacentre operator CDC also ended its A$73 billion "Project Southgate" partnership with Firmus, citing "diverging" business models and missions, according to CDC chief strategy officer Dr Jack Dan.

Why investors balked at the A$44 billion price tag

Fund managers questioned whether Firmus's aggressive expansion justified the valuation, which was roughly three times its August private funding round. Concerns focused on heavy leverage, with the company projected to carry about US$30 billion in debt against US$5 billion in forecast 2028 earnings. Morningstar analyst Lochlan Holloway flagged the gearing, while UniSuper chief investment officer John Pearce said the firm had "a compelling story" but "not a compelling valuation." Some investors also cited founder Oliver Curtis's earlier insider-trading conviction as a governance overhang, and reports suggested the offer price may have been cut to A$8.25 before the board pulled the plug.

Project Southgate collapse signals wider AI infrastructure doubts

The withdrawal comes amid cooling investor appetite for AI infrastructure listings after a period of hype. The AI data centre boom has driven billions in spending, but the Project Southgate collapse highlights execution risk: the partnership delivered only 42 megawatts of a planned 1.6 gigawatts, about 2.5% of its original capacity. Firmus has since pivoted toward Southeast Asia, signing GPU capacity deals with Meta and OpenAI that pushed contracted capacity above 900 megawatts and secured a US$10 billion debt facility led by Blackstone.

What the withdrawal means for AI and IPO markets

Firmus's retreat is a stark signal for the ASX IPO market and for global AI infrastructure fundraising. The Nvidia AI investment ecosystem has powered a wave of data centre projects, but investors are now demanding clearer paths to profitability and lower leverage. The decision also raises questions about whether other mega-deals, including the much-hyped data centre valuation benchmarks, can clear at headline prices during periods of market volatility.

Analysts say the episode may force issuers to reset expectations. "The days of paying 30 times revenue for AI infrastructure with no near-term free cash flow are over," said one Sydney-based fund manager who asked not to be named. "Firmus will likely come back via Nasdaq with a more conservative valuation."

FAQ: Firmus ASX float withdrawal

Why did Firmus pull its ASX float? The board cited recent market volatility and prevailing conditions, saying the proposed terms did not reflect the company's long-term growth prospects and were not in shareholders' best interests.

How big was the Firmus IPO meant to be? It was expected to raise about A$7 billion at A$11 per share, valuing the company near A$44 billion, making it Australia's biggest listing since Telstra in 1997.

Who backed Firmus Technologies? Investors included Nvidia, Blackstone-managed funds, Jane Street and Coatue, with clients including OpenAI and Meta.

What happens next for Firmus? The company plans to pursue private capital and may consider alternative public options, including a possible Nasdaq listing.

What is Project Southgate? It was a partnership between Firmus, CDC Data Centres and Nvidia to build up to 1.6 gigawatts of AI factories in Australia, valued at up to A$73 billion; it was dissolved after delivering only 42 megawatts.

Conclusion: A cooling moment for AI infrastructure hype

Firmus's pulled float marks a turning point for the AI infrastructure investment cycle. While sovereign AI demand remains strong, investors are now demanding more disciplined valuations and clearer economics. Whether Firmus returns via the Nasdaq or private markets, the message is clear: the era of unquestioned mega-valuations for AI data centres is facing its first serious test.