Firmus closes books on struggling IPO amid investor concerns

Market Overview

Firmus Grid Ltd. has completed its institutional bookbuild on October 8, 2026, with shares priced at A$11 each. The offer aims to raise approximately A$7 billion, with an over-allotment option that could reach as much as A$7.7 billion. The valuation implies an equity valuation of around A$43.7 billion, or US$30.3 billion.

Investor Concerns

Early interest in the deal was reportedly strong, but demand then faded noticeably heading into the final stretch, particularly from foreign investors. 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, with plans targeting more than 900 MW of contracted capacity. The company also carries an estimated US$30 billion in borrowings.

Valuation and Debt

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

Reports indicate that half of the shares may go to existing investors, including major backers such as Nvidia, Blackstone, Coatue, and Jane Street. This adds another wrinkle to the deal, as the shareholder structure is heavy on big names.