Firmus Grid Ltd. transformed from a rising star in the AI data center boom to one of the biggest deal failures within 48 hours. Backed by Nvidia, the company was on the verge of one of the largest IPOs in Australian history, aiming for up to $5.5 billion with a valuation of $30 billion. However, the story did not pass the scrutiny of American fund managers.
Throughout the night from Tuesday to Wednesday, the deal team—under the code name 'Australis'—heard one thing from the funds: the valuation was too high. By Wednesday morning, it became clear that the IPO in its announced form would not proceed. Bankers discussed cutting it down to ~$3 billion and valuations to $20–25 billion, but to no avail.
It was earlier revealed that existing shareholders were not bound by an escrow agreement and could flood the market with shares. Shares of Firmus' backer Maas Group Holdings in Sydney fell by as much as 30%—a record. By Thursday around 11:00 AM Australia time, the order book closed, but there was not enough support to hold the price at A$11. Jun Bei Liu from Ten Cap called the IPO 'polarizing.'
The contrast was stark: UniSuper had declined to participate back in July, and soon after, Firmus closed a $2 billion round at a $10.5 billion valuation with Jane Street and Blackstone—compared to $5.5 billion in April with Coatue and Nvidia. Investors saw the business as early-stage: out of a 912 MW pipeline, only 46 MW had been built, with revenue for the 2026 fiscal year at $51 million. A 13x multiplier to EBIT was based on a forecast two years ahead, compared to CoreWeave with a longer track record.
By Friday morning, the IPO was canceled, and the company began exploring a private round with existing investors.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.