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Summary
Firmus, backed by Nvidia (NVDA), scrapped its planned $5 billion Australian IPO on October 9, 2026, after weak investor demand.
Investors pulled orders after escrow terms let existing holders sell over half their stock at listing, against a $30.6 billion intended valuation.
Firmus said the terms did not reflect its business and will raise money privately instead.
Gotrade News - Firmus, the Nvidia-backed Australian AI data center operator, scrapped its planned $5 billion IPO on Friday, October 9, 2026, after weak investor demand, according to Investing.com. The pullback is a setback for an AI build-out tied to Nvidia (NVDA) and Blackstone (BX).
Firmus said the offer terms "did not correctly reflect the strength of its business and long-term growth outlook" and that proceeding "was not in the best interests of the company and its shareholders," as reported by Investing.com. The company will pursue private fundraising instead.
Regular-session close on October 8, 2026, New York time. Prices and changes: Yahoo Finance, cross-checked against Nasdaq's official close. Market cap: Nasdaq, as of October 9, 2026.
Why Did Firmus Pull Its $5 Billion IPO?
Investors pulled orders on Wednesday after a Tuesday disclosure of escrow arrangements that would let existing shareholders sell more than half their stock as soon as the shares listed, according to Investing.com.
The intended $30.6 billion equity valuation compared with a $10.5 billion valuation in August, per the same report.
Investor Joseph Koh told Investing.com the company was "asking for a very big price tag for what would likely be expected to happen in the future assuming near flawless execution."
Portfolio manager Jun Bei Liu called the withdrawal "an important reality check for the AI investment boom," pointing to how fast valuations had risen, the capital the business needs, and its execution risks.
What Is Firmus Worth After the Failed Listing?
Firmus has no market price because it never listed; it was valued at $10.5 billion in August, and its draft prospectus projected $5 billion in annual earnings within five years, per Investing.com.
That projection sat beside a loss-making record. Reuters, citing people familiar with the draft prospectus, reported that Firmus expected a pro forma loss of $77 million for the first half of the financial year ending June 30, 2027, as carried by The Star.
The company, founded in 2019, runs two leased data centers in Melbourne and Singapore and plans five more across Asia-Pacific, most of them at an early stage.
What the Pulled IPO Means for NVDA, BX and META
Firmus counts Nvidia, Blackstone, Coatue Management and Jane Street among its backers, according to Investing.com. Reuters reported via The Star that its customers include Nvidia, Meta Platforms (META) and OpenAI.
Firmus had been set to list on October 22 in what Reuters described as a $5 billion IPO, with a potential post-listing valuation of up to $60 billion, as carried by The Star.
This article is for education and information only and is not investment advice. Investment decisions are yours to make after your own research.
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
M. Alfathan Rahman is a content writer with over 3 years of experience developing digital content strategies across various industries, including fintech. He has experience producing content for tax-related websites and financial education platforms registered with Kominfo (Indonesia's Ministry of Communication and Informatics). His focus areas include data research, and crafting financial articles that are informative, accurate, and accessible to investors of all experience levels.
Hendrie Saputra holds a Master of Business Administration (MBA) with a concentration in Business Risk & Finance, along with professional experience in finance, marketing, and project management. He is experienced in analyzing market data and developing research-driven business strategies.
