Why Nvidia-Backed Firmus Shelved Its Australian IPO? OpenAI Compute Supplier Turns to Private Fundraising

TradingKey - On October 8 ET, according to Reuters, Nvidia (NVDA)-backed AI infrastructure company Firmus announced that it has withdrawn its application to list on the Australian Securities Exchange, turning to private financing.

The company stated that recent market volatility and current market conditions prompted it to adjust its plans. The board of directors believes that the offering conditions failed to fully reflect the company's business and long-term growth prospects, and proceeding with the IPO is not in the best interests of the company and its shareholders.

What Kind of Company Is Firmus?

Headquartered in Sydney, Australia, Firmus primarily builds and operates AI computing facilities to provide customers with GPU compute required for model training and inference. The company utilizes proprietary energy management, cooling technology, and its HyperCube modular infrastructure platform, with investors including Nvidia, Blackstone-managed funds, Coatue, and Jane Street.

On September 8, Firmus announced a multi-year agreement with OpenAI to provide dedicated AI compute from two facilities in Malaysia. The projects are planned to utilize Nvidia Vera Rubin NVL72 systems combined with the HyperCube platform.

The company disclosed at the time that facility capacity corresponding to customer contracts exceeded 900 megawatts. Of its seven AI facilities, two are operational and five remain under development, with the goal of being ready for service within the next 24 months.

Why Firmus Shelved Its Australian IPO

Firmus was originally set to issue shares at A$11 per share, representing an equity valuation of about $30.6 billion, and was scheduled to list on October 23. Including the over-allotment option, the proposed fundraising size was up to approximately $5.5 billion.

According to Reuters, the company's rapid valuation growth and execution risks regarding its expansion plans made investors cautious. Firmus announced in August this year that it had secured a $2 billion strategic equity investment commitment, with a post-money valuation exceeding $10.5 billion; the proposed IPO valuation was nearly three times that level.

Reuters Breakingviews, citing The Australian Financial Review, reported that the company had discussed lowering the per-share price to between A$8 and A$8.25, about 25% to 27% below its original target. The company ultimately chose to withdraw its listing application and seek private financing.

Firmus Turns to Private Financing With Project Construction Funds Pending

Firmus announced in February this year that it had secured a $10 billion debt financing facility, led by a Blackstone-managed fund and backed by Coatue, to advance the construction of Project Southgate AI infrastructure in Australia.

With its IPO put on hold, the company will seek private capital; related reports have not yet disclosed the size, valuation, or terms of the new funding round. Going forward, attention should be paid to the finalization of funds, the delivery progress of facilities under construction, and the timing of when customer contracts begin contributing revenue.