Nvidia-backed Firmus cuts IPO price as demand weakens
Australian data centre operator Firmus Technologies has cut its IPO offer price. Reports on 8 October confirmed the move.
The company is backed by Nvidia and Blackstone.
It cut the offer price to as low as A$8 per share from the original A$11.
It was trying to hold the price at A$8.25.
At A$8, the raise would fall to A$5.9 billion from A$7.9 billion.
The equity value would drop to A$33 billion from about A$44 billion.
An earlier plan had set a A$7.1 billion raise at A$11 a share.
That would have made it Australia's second-largest IPO since Telstra in 1997. Trading was expected to start on 23 October.
Firmus is allocating about half of the IPO to existing investors. These include Nvidia and Blackstone.
The news hit Maas Group, which owns 3.2 percent of Firmus. Its shares fell about 30 percent.
Three US data-centre-adjacent IPOs also pulled back or were delayed this week, according to Reuters Breakingviews.
Analysts read the trend as a stress signal for AI-related stocks.
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