Firmus lowered its proposed offer price from A$11 to around A$8.25 per share, reducing its expected equity valuation from almost A$44 billion to A$33 billion, according to Reuters. The potential IPO proceeds would fall from roughly A$7.9 billion to A$5.9 billion, or about $4.1 billion.
The repricing is notable because Firmus is backed by Nvidia and Blackstone and was preparing one of Australia’s largest-ever listings.
Firmus Valuation Jumped Nearly Threefold
Investor skepticism appears to center on how quickly Firmus’ valuation increased relative to the infrastructure it currently operates.
The company was valued at approximately $10.5 billion after an August fundraising round, before targeting an equity valuation above $30 billion for its IPO less than two months later.
Firmus ultimately plans to operate around 1 gigawatt of AI data-center capacity, but only about 42 megawatts is currently operational.
That gap highlights the same problem affecting other AI infrastructure companies: investors are being asked to value enormous future capacity before much of it has actually been built.
The issue is already visible elsewhere in the sector. CoreWeave recently raised another $3.7 billion through convertible debt as AI cloud providers spend heavily on GPUs and data centers long before all contracted revenue becomes cash.
Investors Are Questioning Future AI Earnings
Firmus expects planned facilities across Australia and Asia to eventually generate billions in annual earnings.
But delivering those projections requires construction, power connections, GPUs and customers to arrive on schedule.
That makes execution increasingly important as capital becomes more expensive. The AI infrastructure financing boom is already relying on bonds, private credit, leases and structured financing to fund enormous upfront costs.
Firmus is therefore becoming an early test of how much public-market investors are willing to pay for future AI capacity rather than existing earnings.
The repricing also spilled into publicly traded investors. Shares of Maas Group, which owns roughly 3.2% of Firmus, fell as much as 30% before closing down more than 22%, erasing about A$517 million in market value.
The AI Infrastructure Trade Is Becoming More Selective
Firmus does not prove that demand for AI computing is collapsing.
Companies such as CoreWeave still report enormous backlogs, while AI infrastructure stocks continue attracting billions in financing.
