Firmus Technologies has shelved its highly anticipated $US5.5 billion initial public offering on the ASX, which would have marked the bourse’s largest float in three decades. Despite this significant withdrawal, prominent Australian funds manager Ellerston Capital, a key shareholder, has reiterated its confidence in the company’s ambitious Asian expansion and its prospects for a Nasdaq listing next year. Firmus Technologies operates as a neocloud company, specialising in developing and managing a portfolio of data centre projects across Australia, Malaysia, and Indonesia.
The decision to abandon the ASX float was primarily driven by weaker-than-expected demand from offshore investors, notably San Francisco-based Coatue Management, which reportedly scaled back its anticipated investment significantly. Adding to the complexities, Liberal Senator Dave Sharma formally raised concerns with the Australian Securities and Investments Commission (ASIC) regarding the listing plan’s disclosures and the accuracy of representations about institutional investor interest. Senator Sharma emphasised the importance of ASIC examining these issues to maintain market integrity and investor confidence.
Ellerston Capital, which holds approximately 78 million Firmus shares, maintained its positive outlook, citing a strong pipeline of sites in key Asian markets and the potential to generate over $US10 billion in EBITDA in the medium term. The fund manager also highlighted Firmus’s strategic relationships with major technology partners like Nvidia, Meta, and OpenAI, underscoring its belief in the company’s long-term viability. Conversely, other market participants expressed reservations. Senior Anthropic executive Jeff Bleich noted the challenge startups face in earning market trust, while Perpetual’s head of Australian equities, Vince Pezzullo, highlighted concerns over Firmus’s operational history, significant debt plans, and a valuation he deemed “moonshot” without corresponding meaningful developments.
