Australian data center developer Firmus has set the terms for what is expected to become Australia's second-largest initial public offering. The company priced its IPO at A$11 per share, implying an equity valuation of about US$30.6 billion, or A$44 billion. The proposed listing will test public market appetite for large-scale artificial intelligence infrastructure.
IPO Terms and Valuation
The offer comprises A$7.1 billion in shares, with an additional US$500 million potentially available through an over-allotment option. Indicative orders already exceed the total deal size, according to the term sheet seen by Reuters. At the current price, Firmus is valued at roughly 13 times its forecast EBIT for the 2028 financial year.
Financial Projections
Firmus expects to generate about US$5.75 billion in EBIT by the 2028 financial year if all planned AI factory sites are running. The valuation multiples have drawn both interest and scrutiny from institutional investors. The implied equity value also marks a substantial increase from the company's estimated worth of about A$1 billion just 12 months ago.
Investor Demand and Listing Timeline
Institutional bids are scheduled to open on October 6 and close on October 9, with ASX trading expected to begin on October 23. The float would rank as the second-largest IPO in Australian history, behind Telstra's 1997 share sale. It would also be the fourth-largest listing globally this year, based on Dealogic data cited by Reuters.
Business Evolution and Expansion Strategy
Firmus began as a bitcoin miner in 2019 before shifting into data centers, which it rebranded as AI factories. The company plans to build seven sites across Singapore, Indonesia, and Malaysia within two years, although only two are currently operating. Its expansion includes projects in northern Tasmania, where construction and community concerns have accompanied the company's growth.
Strategic Contracts and Market Confidence
Firmus this week announced a deal with Facebook parent Meta covering computing capacity at its Southeast Asian facilities. The arrangements include committed capacity and options for further expansion to support Meta's AI research and model training, though financial terms were not disclosed. Meta already uses Nvidia systems at the Firmus Melbourne facility.
Broader AI Infrastructure Market
The broader market for AI infrastructure financing remains active. Nasdaq-listed Australian neocloud SharonAI entered a US$356 million debt facility backed by its GPUs and cash flows at a 9.95% interest rate, with Goldman Sachs and large private credit funds among the lenders. The deal highlights the continued willingness of credit markets to finance specialized AI hardware.
Anthropic is also reportedly moving toward an IPO as soon as the middle of November, with formal marketing potentially starting the week of November 9. Prospective investors see a fair value between US$1.8 trillion and US$2 trillion, and the raise is expected to match or top SpaceX's record US$86 billion float in June. Pressing ahead would contrast with delayed listings by rivals such as OpenAI.
Chip designer Broadcom has agreed to lend Anthropic up to US$42 billion for its infrastructure build-out, according to Reuters. Anthropic is expected to become Broadcom's largest compute customer next year, a relationship that highlights the circular spending dynamics in the AI sector. These broader developments underscore the scale of capital flowing into AI infrastructure globally.
Risks and Considerations
Investors who met Firmus in Sydney and Melbourne last week expressed concerns over the company's ability to fulfill its valuation, which depends on several planned sites coming online within two years. The distinction between contracted demand and optional expansion will be central to assessing the offer. Community pushback has also affected data center development in Australia, including Goodman's withdrawal of a planned Northern Sydney facility.
Firmus's IPO represents a significant test for public investors considering large-scale AI infrastructure exposure. Strong early demand suggests confidence in the company's growth trajectory and the broader artificial intelligence economy, but execution risk and valuation remain key questions. The listing will provide a closely watched benchmark for comparable AI infrastructure capital raises in the Australian market.