Economic Information Agency reported on the 9th that Australian data center company Firmus Grid, backed by Nvidia (US.NVDA), announced it has shelved its IPO plans and will instead raise funds through the private market. This move sounds an alarm for the booming AI infrastructure financing market.
In a statement on Friday, Firmus said it would withdraw its application to list on the Australian Securities Exchange. The company stated: 'After considering recent market volatility and current market conditions, the board believes that proceeding with the IPO under current conditions would not appropriately reflect the company's business strength and long-term growth prospects.'
Reports indicated Firmus originally targeted a price of 11 Australian dollars per share, which would have valued the company at up to 30 billion U.S. dollars, potentially making it the second-largest new stock offering in Australian history, but market demand has been lukewarm. Analysts believe this reflects that despite the AI boom driving global market development, investors remain cautious.
Analysts pointed out that this shelved IPO reflects investors beginning to reassess the high valuations and capital-intensive models of AI infrastructure companies. Maxence Visseau, Dubai-based investment director at multi-strategy investment firm Arkevium Capital, said: 'Investors still believe in AI, but they will absolutely not blindly chase companies that heavily spend on building data centers, are highly dependent on a few large customers, and promise profits only years down the line.' (rc)
In a statement on Friday, Firmus said it would withdraw its application to list on the Australian Securities Exchange. The company stated: 'After considering recent market volatility and current market conditions, the board believes that proceeding with the IPO under current conditions would not appropriately reflect the company's business strength and long-term growth prospects.'
Reports indicated Firmus originally targeted a price of 11 Australian dollars per share, which would have valued the company at up to 30 billion U.S. dollars, potentially making it the second-largest new stock offering in Australian history, but market demand has been lukewarm. Analysts believe this reflects that despite the AI boom driving global market development, investors remain cautious.
Analysts pointed out that this shelved IPO reflects investors beginning to reassess the high valuations and capital-intensive models of AI infrastructure companies. Maxence Visseau, Dubai-based investment director at multi-strategy investment firm Arkevium Capital, said: 'Investors still believe in AI, but they will absolutely not blindly chase companies that heavily spend on building data centers, are highly dependent on a few large customers, and promise profits only years down the line.' (rc)
