Australian AI data center operator Firmus has withdrawn its planned USD 5 billion initial public offering (IPO). The company cited market volatility and unfavorable conditions for the share sale. The proposed terms did not adequately reflect its business strength and long-term growth prospects.
“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 sent to CNBC. The company will now seek funding from private markets while evaluating other public and private financing options. Firmus had reportedly planned to price its shares at AUD 11 each, valuing the business at approximately USD 30.6 billion. The proposed offering would have ranked as the second-largest new share sale in Australian history.
The withdrawal comes after Firmus secured substantial investment to expand its AI infrastructure business. In August, the company announced a USD 2 billion equity funding round backed by Nvidia, Coatue Management, Blackstone and Jane Street. That investment brought Firmus' valuation to more than USD 10.5 billion and lifted its total equity raised over the preceding year to over USD 3 billion.
The company has been expanding its data center operations to meet rising demand for computing power used in artificial intelligence development. Its plans include a new US manufacturing facility and an expansion into drone products.
Last month, Firmus also announced strategic agreements with Meta to supply GPU computing capacity at its AI data centers across Southeast Asia. The facilities use Nvidia's DSX platform and will support Meta's AI research, model development and training.
The decision to withdraw the IPO signals that Firmus prefers to pursue alternative financing rather than accept terms it considers insufficient. Its next funding move will help determine how the company finances its planned expansion as demand for AI infrastructure grows.
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