Nvidia-backed Aussie AI firm Firmus withdraws historic IPO, citing market volatility
Quick Look
Firmus, an Australian AI data center operator backed by Nvidia, has withdrawn its planned $5 billion initial public offering due to market volatility and unfavorable terms, opting instead to pursue private market capital and alternative options.
AI-generated summary
Why It Matters
Firmus had previously raised over $3 billion in equity funding from investors including Nvidia, Coatue Management, Blackstone, and Jane Street, with a valuation exceeding $10.5 billion after its August funding round.
Australian AI data center operator Firmus, which is backed by Nvidia , has withdrawn its planned mega initial public offering, citing market volatility and conditions, the company said in an emailed statement to CNBC.
Firmus said its board determined that the terms of the proposed offering did not adequately reflect the strength of its business and long-term growth outlook.
"The board therefore concluded that proceeding with the offer was not in the best interests of the company and its shareholders," Firmus said in a statement. "Firmus will now pursue capital from the private markets and consider alternative public and private market options," it added.
Firmus had reportedly planned to raise $5 billion in its IPO, pricing shares at A$11 apiece, which would have made it the second-largest new share sale in Australia's history. The IPO valued the company at around $30.6 billion.
In August, the company announced a $2 billion funding round backed by Nvidia, Coatue Management, Blackstone and Jane Street, bringing its total equity raised over the preceding year to more than $3 billion and its valuation to over $10.5 billion.
What to Watch
AI outlook — possibilities, not facts
Firmus will pursue alternative funding through private markets or delay its IPO until market conditions improve
Likely · Within months
Open Questions
- What specific private market options will Firmus pursue?
- Will the company attempt another IPO in the future?
- How will the withdrawn IPO affect Firmus's valuation and growth plans?
