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Firmus faces investor skepticism and local backlash ahead of $7bn ASX float

Questions over valuation and community concerns cloud Australia's second-largest IPO, set to begin trading Oct 23

By LineZotpaper
Published
Updated
Read Time2 min
Sources3 outlets
Firmus Technologies, the Australian AI data centre developer behind a proposed $7 billion ASX float, is facing mounting questions from investors and local communities about its valuation and expansion plans, as institutional bidding opens this week.

The company, which began as a bitcoin miner in 2019 before rebranding its data centres as "AI factories", has set an $11 share price for the IPO, implying an equity valuation of around US$30.6 billion (A$44 billion) — a 44-fold increase on its $1 billion valuation 12 months ago, according to a term sheet seen by Reuters.

Institutional bidding runs from October 6 to 9, with ASX trading scheduled for October 23. Indicative orders already exceed the offer, the term sheet states, though Firmus declined to comment to Reuters.

The listing would be Australia's second largest IPO, behind Telstra's 1997 privatisation. But some investors have expressed caution. One warned that the company's forecasts were "a little bit of a fairytale", while another told Guardian Australia: "These guys are just coming from nothing."

Meanwhile, construction has begun on one of Firmus's planned facilities in Tasmania, where local resident Kayla Thompson said she and neighbours were unaware of the plans until work started. Her teenage stepchildren can see the site from their classroom window. The company hopes to build seven sites across Australia, Singapore, Indonesia and Malaysia.

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Analysis

Why This Matters

  • The IPO is the second largest in Australian history and will test investor appetite for AI infrastructure at a time of high valuations.
  • Local backlash in Tasmania could signal broader community resistance to rapid data centre expansion, potentially impacting regulatory approvals.
  • The 44x valuation jump in one year raises questions about whether AI infrastructure companies are overhyped.

Background

Firmus started as a cryptocurrency miner in 2019 before pivoting to data centres, which it now markets as "AI factories" designed to support large-scale artificial intelligence workloads. The company is planning seven facilities across Australia and Southeast Asia. The ASX float is expected to raise around $7 billion, placing it behind only Telstra's 1997 privatisation in the Australian IPO rankings.

Key Perspectives

Firmus Technologies: The company has set an $11 issue price and reports strong indicative demand from institutional investors. It has not publicly commented on the IPO process beyond the term sheet. Skeptical investors: Warn the valuation is inflated relative to the company's history and that its revenue forecasts may be unrealistic. Local communities in Tasmania: Residents say they were not consulted before construction began on a data centre site near schools and homes, raising concerns about planning and transparency.

What to Watch

  • The outcome of institutional bidding this week and whether the float is fully subscribed.
  • Any regulatory or planning challenges to Firmus's Tasmanian and Southeast Asian projects.
  • The company's first-half financial results after listing, which will test its valuation.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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