Nvidia-backed Australian AI data centre operator Firmus has withdrawn its mega IPO plan citing market volatility and unfavorable conditions, according to Reuters. The company's board determined that the proposed offering terms do not adequately reflect the strength of its business and long-term growth outlook, concluding that proceeding with the IPO was not in the company's best interests. Firmus will now pursue capital from private markets and consider alternative public and private funding options. The withdrawal follows earlier reports of potential price cuts from A$11 to A$8.25, which had already caused significant market disruption for Maas Group. Firmus counts OpenAI as an anchor customer and plans to pursue private funding while exploring alternative capital-raising options.
The withdrawn IPO would have been Australia's second-largest new share sale in history, with Firmus likely to raise $5 billion via its IPO, pricing shares at A$11 per share. The IPO valued the firm at $30.6 billion, representing a significant reduction from its previous valuation. In August, Firmus had announced a $2 billion funding round backed by Nvidia, Blackstone, Coatue Management and Jane Street, bringing its total equity raised over the prior year to over $3 billion and its valuation to more than $10.5 billion. The withdrawal represents a substantial loss for the company, which had been positioned to become Australia's largest new share sale in nearly three decades. The proposed listing highlighted the scale of investor interest in AI infrastructure businesses before market conditions disrupted the deal.
The withdrawal would significantly impact Maas Group's investment in Firmus. Maas holds a 3.2% stake in the data centre operator and supplies the company through its JLE Group electrical infrastructure business, leaving it exposed to both investment and operational implications of the abandoned listing. According to Reuters, Maas has work orders worth approximately A$1.1 billion across fiscal 2026 and 2027, with the company having received A$373 million in payments under the contracts and expecting to complete the work by the end of 2027. The original price cut to A$9 from A$11 had reduced the holding value by about A$75 million, though the contracts remain intact providing revenue visibility amid uncertainty over Firmus' funding strategy.
Maas shares dropped as much as 10.7% to A$4.43, their lowest level in five months, after trading resumed following a halt pending an update on Firmus's IPO and contracts. The decline followed a sharp selloff on Thursday when Maas shares slumped 22.4% after reports that Firmus was reconsidering listing terms, wiping approximately A$517 million off Maas's market value. The stock has fallen more than 31% so far this week, putting it on course for its worst weekly performance on record. The withdrawal underscores growing investor caution over highly valued AI infrastructure companies, particularly those pursuing aggressive expansion plans that require substantial capital investment.
