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Firmus Grid Ltd. has closed the books on its initial public offering. According to Bloomberg, it got there with investors openly wondering whether the deal would be canceled.
That is an awkward backdrop for a listing positioned as the second-largest IPO in Australian history. Only Telstra’s 1997 float ranks ahead of it.
A big deal with a thinning crowd
The Australian data center operator completed its institutional bookbuild on October 8, 2026. Shares were priced at A$11 each.
At that price, Firmus is aiming to raise approximately A$7 billion. If the over-allotment option is exercised, the figure could reach as much as A$7.7 billion.
The offer implies an equity valuation of around A$43.7 billion, or US$30.3 billion.
Early interest in the deal was reportedly strong. Demand then faded noticeably heading into the final stretch, particularly from foreign investors.
That retreat sparked speculation about two unpleasant outcomes. One was a cut to the offer price. The other was Firmus walking away from the float altogether.
Neither has happened so far. The books are closed, and trading is expected to start around October 22-23, 2026, once regulatory approvals are in hand.
Why the skeptics are skeptical
The concerns are not hard to find in the company’s own numbers. Firmus is projecting a loss of approximately US$77 million for the first half of FY2027.
It currently operates just two data centers. Its ambitions are much larger, with plans targeting more than 900 MW of contracted capacity.
Then there is the debt. Firmus carries an estimated US$30 billion in borrowings.
Put that next to the US$30.3 billion equity valuation and the two figures land in nearly the same place. Investors are being asked to back a balance sheet where debt roughly matches what the equity is supposed to be worth.
One widely circulated critique of the deal tallied “30 red flags,” pointing to aggressive valuation metrics. It also warned the stock could face selling pressure once it starts trading.
Shareholder structure adds another wrinkle. Reports indicate that half of the shares may go to existing investors.
That roster is heavy on big names. Nvidia, Blackstone, Coatue and Jane Street are among the major backers.
Context: the AI infrastructure trade meets the public market
The 1997 Telstra float involved an established telecommunications business, while Firmus is selling a growth plan with two working facilities attached.
What this means
Trading is expected to begin around October 22-23. Fading demand during the bookbuild suggests the price-setting crowd was thinner than the headline size implies.
The investors who matter most to watch are the foreign institutions that reportedly pulled back late. Their absence is a signal about how global money views AI infrastructure valuations right now.
Progress toward that 900 MW-plus contracted capacity target, along with any update on how the debt is managed or restructured, will shape whether the valuation looks ambitious or simply stretched.
Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.
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