Firmus Grid pulls $5 billion IPO after asking 2.9 times its valuation of two months earlier
Firmus Grid scrapped its Australian IPO after investors balked at a $30 billion valuation, Mint reported. Listed rival CoreWeave is still worth $37 billion, so the sources show a failed price more clearly than a failed sector.
The Investor · Invest desk
Key figures: Firmus's IPO target is $15.2 billion per operating data center, against about $725 million per facility for CoreWeave's market cap, roughly 21 times as much. About 58% of Firmus shares were to be free to trade from day one.
| Figure | Value | Note | Claim |
|---|---|---|---|
| Firmus IPO target per operating data center | US$15.2 billion | 21 | |
| CoreWeave cap per facility | $725M about | 22 | |
| Firmus per site vs CoreWeave | 21 times, roughly | 23 | |
| Free to trade from day one | 58% shares, about | 20 |
What happened
- The $30.4 billion target compared with $10.5 billion two months earlier, when Blackstone and Coatue joined a $2 billion raise for Firmus.
- Bloomberg, citing people familiar, reported the deal failed to draw adequate support at the A$11 marketed share price.
- Firmus said it would instead pursue further private investment.
- The retreat comes about a month ahead of Anthropic's planned IPO.
Why it matters
- What it limits constraint Bloomberg reported the proceeds were needed to help build the wider network, so the five sites in development lose their stated funding source and lean on the private money Firmus now says it will seek.
- What doesn't add up contradiction Bloomberg sees "fresh cracks in the AI funding boom" in the failed book, while the pension fund that skipped it calls Firmus's story compelling and objects only to the valuation.
- Who's exposed exposure Investors still struggle to value companies whose chips have an uncertain lifespan, and Firmus needed to build five more sites on that footing with debt analysts already called a worry.
Next story · Product · Oct 8
Valuation doubts push Nvidia-backed Firmus to drop its US$5.5 billion ASX floatConfirmed12 publishers
A target of $30.4 billion [3] over two operating data centers [5] comes to $15.2 billion per operating site [21]. CoreWeave's $37 billion across 51 facilities [17] is about $725 million a site [22], so Firmus was priced at roughly 21 times that figure [23]. The comparison is crude (sites differ in size, and Firmus was also priced on five more in development across Australia, Malaysia and Indonesia [5]), but it shows what the bookrunners asked investors to underwrite: a pipeline, at 2.9 times the valuation of a round two months old [24].
UniSuper did not buy into the offering, its chief investment officer John Pearce said [7]. "It all comes down to valuation: We think that Firmus indeed has a compelling story. It just doesn't have a compelling valuation," Pearce said [6]. A wider version came from Bloomberg's sources. "Investors still believe in AI," said Maxence Visseau, chief investment officer at Arkevium Capital. "What they won't do is pay any price for companies that spend huge amounts on data centers, depend on a few big customers, and promise profits years from now." [15]
Bloomberg, citing discussions with at least 10 investors and advisers, added a supply worry: about 58% of shares would be free to trade from day one, and existing holders might sell soon after listing [20]. A holder who came in at the $10.5 billion valuation would sit on a paper gain of about 190% at $30.4 billion [25]. Analysts also flagged Firmus's cost of debt after bond yields surged [10]. My Bui, an economist at AMP, said: "In a higher-yield environment, investors are clearly demanding greater compensation for risk, including in equities, which places a cap on lofty valuations." [8]
The two accounts differ on size and status. Mint reports a $5 billion raise that was withdrawn [1]; Bloomberg describes a $5.5 billion listing whose books closed Thursday before Firmus indicated a price or structure [26] [13].
We think the sources support a narrower claim than thinning appetite for neoclouds, or rather the sharper version of it: one bookbuild failed on price, free float and debt cost at a company with two operating sites. CoreWeave fell nearly 8% on Thursday on worries about profitability [18], and a sector verdict would need more than one session of that. Toby Hearst, associate investment strategist at Yardeni Research, said: "The demand for compute still far outstrips supply. As long as the AI data center build-out continues, neoclouds should keep filling the gap the hyperscalers can't build fast enough to cover." [19] Nvidia holds a direct equity stake in Firmus and is also its customer and hardware supplier [9]; neither account says investors cited that tie in staying out.
The view is wrong if CoreWeave keeps falling after Thursday, if Firmus's private investors pay close to $30 billion (the failure would then sit with the float and the structure), or if Anthropic's book is weak, since that would show the discount reaches past infrastructure owners.
What to watch
- The valuation Firmus's next private investors accept, set against the $10.5 billion and $30.4 billion marks.
- CoreWeave's share price after Thursday's nearly 8% fall, and whether its $37 billion capitalization holds.
- Whether Anthropic's book clears at its first marketed price when it opens in about a month.
Information, not investment advice. This story is general information about companies and markets, drawn from cited reporting. It is not a recommendation to buy, sell or hold any security; check the cited sources before acting.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence58
- Adoption
- Not scored
- Hype gap+30
- Incentives60
- Confidence62
Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
Firmus Grid scrapped plans for Australia's largest IPO in almost 30 years, pulling plans to raise $5 billion after investors balked at its proposed $30 billion valuation.
- [2]
Firmus said it would instead pursue further private investment.
- [3]
Firmus had been targeting a market capitalization of A$43.7 billion, equivalent to US$30.4 billion.
- [4]
The US$30.4 billion target was up from US$10.5 billion two months earlier, when institutional investors Blackstone and Coatue participated in raising US$2 billion for Firmus.
- [5]
Firmus has two operational data centers and a further five in development across Australia, Malaysia and Indonesia.
- [6]
"It all comes down to valuation: We think that Firmus indeed has a compelling story. It just doesn't have a compelling valuation," said John Pearce, chief investment officer at Unisuper.
- [7]
Unisuper had chosen not to buy Firmus stock in the IPO, Pearce said.
- [8]
"In a higher-yield environment, investors are clearly demanding greater compensation for risk, including in equities, which places a cap on lofty valuations," said My Bui, an economist at AMP.
- [9]
Nvidia holds a direct equity stake in Firmus and is also a customer and hardware supplier to the Australian firm.
- [10]
With bond yields having surged, many analysts had flagged worries about Firmus's cost of debt.
- [11]
Investors are still struggling to figure out the value of companies that own chips with an uncertain lifespan; data-center operators must keep updating chips while depreciating the value of older assets.
- [12]
The planned listing by Firmus Grid failed to attract adequate support for the A$11 marketed share price, according to people familiar with the matter.
- [13]
Firmus closed order books on Thursday and had so far given no clear indication of the price or the deal structure.
- [14]
The IPO proceeds were needed to help fund construction of Firmus's broader network of data centers.
- [15]
"Investors still believe in AI," said Maxence Visseau, Dubai-based chief investment officer at Arkevium Capital. "What they won't do is pay any price for companies that spend huge amounts on data centers, depend on a few big customers, and promise profits years from now."
- [16]
Bloomberg wrote that the sudden plunge in demand for the IPO "is revealing fresh cracks in the AI funding boom."
- [17]
CoreWeave operates 51 facilities and has a market capitalization of $37 billion.
- [18]
CoreWeave's shares fell nearly 8% on Thursday on worries over the profitability of AI-related companies.
- [19]
"The demand for compute still far outstrips supply. As long as the AI data center build-out continues, neoclouds should keep filling the gap the hyperscalers can't build fast enough to cover," said Toby Hearst, associate investment strategist at Yardeni Research.
- [20]
Concerns about Firmus included the risk that existing shareholders could flood the market soon after listing, with about 58% of shares free to trade from day one, according to discussions with at least 10 investors and advisers.
- [21]
A $30.4 billion target over two operating data centers is $15.2 billion per operating data center.
- [22]
CoreWeave's $37 billion market cap over 51 facilities is about $725 million per facility.
- [23]
Firmus's target per operating site was roughly 21 times CoreWeave's market cap per facility.
- [24]
The $30.4 billion IPO target was about 2.9 times the $10.5 billion valuation of two months earlier.
- [25]
A holder entering at the $10.5 billion valuation would show a paper gain of about 190% at $30.4 billion.
- [26]
Bloomberg described the planned Firmus listing as a $5.5 billion deal.
- [27]
The retreat comes about a month ahead of Anthropic's planned IPO.
Sources
2 independent publishers whose own reporting we read for this story.
- finance.yahoo.comNvidia-Backed IPO’s Cratering Demand Sends Warning on AI Funding
1 article · October 8, 2026
- livemint.comScrapped IPO of Nvidia-backed company points to limits of AI Boom | Mint
1 article · October 9, 2026