Firmus's IPO plans crumble

Firmus Technologies was set to list on the ASX on twenty-third October in what would have been the largest IPO since Telstra in nineteen ninety-seven. Those plans are now in doubt.

Valuation slashed as investors flee

Multiple sources told Guardian Australia the AI datacentre company is slashing its valuation to entice sceptical investors, or may shelve the initial public offering altogether.

Near forty-four billion valuation called fanciful

Most alarm centred on Firmus's near forty-four billion dollar valuation for a company still in its start-up phase. One investment manager said the whole thing was getting fanciful.

“The whole thing was getting fanciful”

Valuation tripled in eight weeks

Just over a year ago Firmus was worth less than two billion dollars. In eight weeks it jumped to fifteen billion dollars, then to almost forty-four billion dollars just days ago.

Ninety-seven percent revenue from unbuilt sites

Firmus has two small operational sites and seven contracted and four planned facilities. About ninety-seven percent of contracted revenue sits on sites that aren't yet built, according to Minotaur Capital co-founder Armina Rosenberg.

Morningstar warns of euphoric bubble phase

Morningstar analyst Lochlan Halloway warned market sentiment surrounding Firmus had entered the euphoric phase of a bubble. The risk lies in whether investors are paying far too steep a price.

Share price faces radical cut or withdrawal

Investors were going to be asked to pay eleven dollars per share. That price will either be radically reduced, slashing its valuation, or the float will be withdrawn altogether.