Datacentre company Firmus’s high flying valuation may be coming back down to earth ahead of expected ASX debut
Summary
Firmus Technologies, an AI datacentre company, is facing a major drop in its valuation just before its planned listing on the Australian Stock Exchange (ASX). The company is considering lowering its value or even canceling the public offering due to weak investor interest and operational challenges.Key Facts
- Firmus planned to list on the ASX on October 23 with a valuation close to $44 billion.
- This valuation jumped from about $1.85 billion a little over a year ago to $44 billion recently.
- Firmus builds and runs AI datacentres that use Nvidia GPUs, aiming to serve big AI companies like Meta, OpenAI, and Nvidia.
- Only two of Firmus’s datacentres are currently operational; most planned sites are not yet built.
- Around 97% of projected revenue comes from sites under construction or planned, not yet generating income.
- Investors include Nvidia and Wall Street firms like Blackstone and Coatue.
- Local community opposition and construction challenges could slow Firmus’s growth.
- The offering price was expected to be $11 per share, but investor enthusiasm has cooled, putting the IPO at risk.
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