Firmus Plans to Hand About Half Its Up-to-$5.5B Australian IPO to Existing Investors
Two people told Reuters on Oct. 5 that Nvidia-backed Australian AI data-centre operator Firmus plans to allocate about half of its IPO — including the over-allotment — to selected existing strategic and financial investors. Bloomberg reported the allocation first; Bloomberg’s original was not inspected here. Per a term sheet Reuters reviewed, the price is fixed at A$11, raising about A$7.1 billion (~US$4.94 billion) plus a ~US$500 million greenshoe. Reuters puts the equity valuation at about $30.6 billion. Prospectus due Oct. 12; ASX trading Oct. 23.
The clearest public-market price yet for a non-U.S. AI-factory operator is also a float-tightening exercise: about half the book goes back to people who already own the stock.
Two people with knowledge of the matter told Reuters on October 5, 2026 that Firmus, the Sydney-headquartered AI data-centre and modular “AI factory” operator, plans to allocate about half of its initial public offering — including the over-allotment — to selected existing strategic and financial investors. Bloomberg reported the allocation detail first; that Bloomberg original was not inspected for this piece. Firmus has previously named Nvidia, Coatue, Blackstone and Jane Street among its investors. Firmus told Reuters it had “no comment or further detail to provide at this time.”
The money, in the currencies Reuters used
Per a term sheet Reuters reviewed (first in an Oct. 1 pricing story, then again on Oct. 5):
| Item | Figure (as reported) |
|---|---|
| Offer price | A$11 (~US$7.65) |
| Primary raise | A$7.1 billion (~US$4.94 billion) |
| Greenshoe / over-allotment | about US$500 million |
| “Up to $5.5 billion” | USD, including greenshoe |
| Equity valuation | Reuters: about $30.6 billion |
| Analyst debt estimate | about $30 billion → implied EV about $60 billion |
| Prospectus | October 12 |
| ASX trading | October 23 |
Indications of interest already exceed the offer, one of the people said. Bookbuilding starts Tuesday; banks now expect the institutional book to close Thursday, a day earlier than the Friday close in the term sheet. Bank of America, JPMorgan, Morgan Stanley and Morgans are leading. It would be Australia’s second-largest IPO after Telstra (1997).
How to read the jump
Firmus was valued at about $10.5 billion post-money after a $2 billion strategic equity round in August, when Nvidia and Coatue followed on and Blackstone and Jane Street participated. Reuters’ ~$30.6 billion equity figure is roughly a tripling in two months. Handing half the IPO — including the greenshoe — to existing strategic and financial holders tightens the free float and can flatter early trading. It also deepens Nvidia’s pattern of financing its own infrastructure customers. The ~$60 billion enterprise-value line is equity plus a bank-analyst debt estimate, not a firm’s audited balance sheet, and the prospectus is not out yet.
Limits
- Allocation plan rests on two unnamed sources to Reuters; Bloomberg broke it first but was not re-read here.
- Both pricing and allocation stories are Reuters (different reporters) — not independent corroboration of each other.
- $30.6 billion is how Reuters writes the valuation; state currencies as above rather than converting casually.
- ~$60 billion EV depends on an analyst ~$30 billion debt estimate.
- Prospectus due Oct. 12 — term-sheet figures are pre-prospectus.