AI data centre company Firmus scraps its record-breaking ASX IPO amid investor skepticism

Consensus Summary

Firmus Technologies, an AI data centre company co-founded by Oliver Curtis, Tim Rosenfield, and Jonathan Levee, abruptly scrapped its planned $44 billion ASX IPO on October 8, 2026, after investors rejected its valuation and pricing. The company, which had positioned itself as a key player in Australia’s AI infrastructure, cited 'market volatility and prevailing conditions' as the reason for withdrawing its application. The IPO, set to be the largest in Australia since Telstra’s 1997 listing, was expected to raise around $7 billion, valuing Firmus at roughly the same level as Woolworths. However, as demand faltered, the company’s bankers slashed the share price from $11 to as low as $5.50, and the float collapsed within days.

Firmus’s rapid rise was fueled by its promise to build liquid-cooled 'AI factories' using Nvidia chips, catering to demand from tech giants like Meta and OpenAI. The company’s valuation skyrocketed from $1.2 billion in late 2024 to $44 billion by October 2026, despite operating only two small data centres and relying on seven contracted but unbuilt facilities for 97% of its revenue. Backed by investors like Nvidia (7.2% stake) and Blackstone, Firmus’s founders—including Curtis, who served a year in prison for insider trading—had positioned the IPO as a cornerstone of Australia’s tech ambitions. However, skepticism grew over its aggressive growth forecasts, lack of profitability, and the high price tag, which some investors deemed 'priced to perfection'.

Key figures in the saga included UniSuper’s chief investment officer, John Pearce, who publicly criticized the valuation as unsustainable, and Firmus’s bankers, who initially reported overwhelming demand before scrambling to reprice the shares. Curtis, who stood to become a billionaire from his 13% stake, faced scrutiny over his criminal past and the company’s rapid financial maneuvers. The Guardian reported that Firmus’s bankers even sought $150 million from hedge funds as a last-ditch effort to salvage the float, a move that signaled desperation. Meanwhile, the SMH highlighted how Curtis’s redemption arc—from prison to corporate kingpin—had hinged on the IPO’s success, leaving his wealth and reputation vulnerable if the deal failed.

While all sources agree on the IPO’s collapse, details diverge on the timeline and specifics. The ABC emphasizes the role of market volatility and the withdrawal from a parliamentary AI inquiry, while the Guardian and SMH focus on the internal struggles of Firmus’s bankers and the drastic repricing efforts. The Guardian also notes that Firmus’s revenue of $50 million in 2025 was dwarfed by its $44 billion valuation, raising questions about its long-term viability. The SMH adds that Curtis’s father, Nick Curtis, and other insiders also stood to gain significantly, while external firms like Wes Maas’s industrial company had restructured around Firmus’s plans, only to see their shares plummet as the IPO unraveled.

With the IPO scrapped, Firmus now plans to pursue private funding and explore alternative listing options, possibly on the Nasdaq. The collapse has left questions about the broader AI data centre sector, particularly concerns over energy infrastructure, community opposition, and the sustainability of rapid valuation growth. Analysts like Anna Wu from Floodline Research suggest the timing was poor, as investor sentiment shifted from euphoria to caution. The Guardian’s coverage frames the failure as a cautionary tale about overvalued tech hype, while the ABC highlights the broader implications for Australia’s stock market and AI industry. The unresolved question remains whether Firmus can secure private funding or if its ambitious expansion plans will face further setbacks.