From Startup Fortune · · 1m 30s
Firmus Grid Abandons IPO After Investor Pushback
Nvidia-backed Firmus Grid cancels $30 billion IPO after investors balk at revenue multiple.
In brief
Nvidia-backed Firmus Grid cancels $30 billion IPO after investors balk at revenue multiple. Firmus Grid scrapped its $30 billion IPO valuation after investors rejected its $51 million annual revenue at a $30 billion price tag, shifting to a private funding round. Originally reported by Startup Fortune.
Firmus Grid Withdraws IPO
Firmus Grid Ltd. withdrew its Australian Securities Exchange listing application on October 9 after investors balked at its $30 billion valuation.
IPO Valuation Drops
The company cut its IPO price from A$11 to A$8.25 per share after bookbuilding stalled with only 5% of its data centers operational.
Investor Pushback
Investors rejected Firmus Grid's $30 billion valuation despite its $51 million annual revenue and partnerships with Nvidia, Meta, and OpenAI.
Private Funding Shift
Firmus Grid will now raise $2 billion to $3 billion in a private round from existing backers instead of a public IPO.
Revenue Multiple Issue
Investors choked on Firmus Grid's $51 million annual revenue under a $30 billion price tag, a multiple even AI bulls couldn't swallow.
Market Context
Bain & Company estimates AI infrastructure spending could hit $1.5 trillion annually by 2031, requiring $6 trillion in annual revenue by then.
Private Market Advantage
Private investors can still fund Firmus Grid's growth, while public investors demand a valuation that triples in a quarter.
What This Means
Firmus Grid's move shows public investors won't back AI growth without revenue proof, while private markets can still fill the gap.
At a glance
Firmus Grid scrapped its $30 billion IPO valuation after investors rejected its $51 million annual revenue at a $30 billion price tag, shifting to a private funding round.
