Firmus Pulls Biggest ASX Float Since Telstra, AI Datacentre Doubts 2026

Firmus Technologies has scrapped what would have been the biggest ASX float since Telstra in 1997, as investor demand for its AI datacentre business failed to materialise. The company, backed by Nvidia and Wall Street heavyweights, had hoped to raise billions at a $44bn valuation.

Why Firmus Abandoned Its ASX Listing

The decision to withdraw the initial public offering (IPO) came after bankers overestimated demand for the much-hyped AI datacentre company. A Firmus spokesperson said the board concluded that proceeding was no longer in the best interests of the company and its shareholders.

"Firmus will now pursue capital from the private markets and consider alternative public and private market options," the spokesperson said on Friday morning. "We will provide additional information to shareholders as those options progress."

The float was expected to be the largest on the ASX since Telstra's privatisation, but scepticism mounted over Firmus's huge valuation and forecast earnings. The company is still in its start-up phase, with only two small operational sites.

Investor Skepticism and Overestimated Demand

Despite backing from chip maker Nvidia and financial firms Blackstone, Jane Street, and Coatue, the polished pitch unravelled midweek. It became clear that the company's bankers had vastly overestimated demand in their bid to raise funds.

The lack of demand means Firmus will need to raise money from private investors to fund its plans to build liquid-cooled "AI factories" in Australia and across Asia.

Key Takeaways

• Firmus Technologies has cancelled its highly anticipated ASX listing due to insufficient investor demand.
• The IPO would have been the largest since Telstra in 1997, with a $44bn valuation.
• The company will now seek private capital to fund its AI datacentre expansion.
• Despite backing from Nvidia and other major investors, skepticism over the valuation proved insurmountable.

Comparing Firmus's Failed Float to Other Major ASX Listings

To put Firmus's abandoned float in context, here's how it stacks up against some of the largest ASX listings in history.

While Telstra's float was a landmark event that transformed the Australian telecommunications landscape, Firmus's failure highlights the challenges of bringing a start-up with limited operational history to the public markets at such a lofty valuation.

What's Next for Firmus and the AI Datacentre Sector?

Firmus will now turn to private markets to secure funding for its ambitious plans. The company aims to build liquid-cooled AI factories in Australia and Asia, capitalising on the global AI boom.

However, the failed float raises questions about investor appetite for AI-related infrastructure plays, especially those with high valuations and unproven business models. It remains to be seen whether Firmus can convince private investors to back its vision.

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