Economic Information Daily reported on the 9th that Firmus Grid, an Australian data center company backed by Nvidia (US.NVDA), has announced the shelving of 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 (9th), Firmus said it will 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 indicate Firmus had initially targeted a price of A$11 per share, which would have valued the company at up to US$30 billion, potentially making it the second-largest initial public offering in Australian history. However, market demand has been lukewarm. Analysts believe this reflects that despite the AI boom driving global markets, investors remain cautious.
Analysts say this IPO withdrawal reflects investors beginning to reassess the high valuations and capital-intensive models of AI infrastructure firms. Maxence Visseau, Dubai-based investment director at multi-strategy investment firm Arkevium Capital, said: 'Investors still believe in AI, but they absolutely will not blindly chase companies that heavily spend on building data centers, rely heavily on a few large customers, and promise profits only years down the line.' (rc)
In a statement on Friday (9th), Firmus said it will 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 indicate Firmus had initially targeted a price of A$11 per share, which would have valued the company at up to US$30 billion, potentially making it the second-largest initial public offering in Australian history. However, market demand has been lukewarm. Analysts believe this reflects that despite the AI boom driving global markets, investors remain cautious.
Analysts say this IPO withdrawal reflects investors beginning to reassess the high valuations and capital-intensive models of AI infrastructure firms. Maxence Visseau, Dubai-based investment director at multi-strategy investment firm Arkevium Capital, said: 'Investors still believe in AI, but they absolutely will not blindly chase companies that heavily spend on building data centers, rely heavily on a few large customers, and promise profits only years down the line.' (rc)
