Australian data centre operator Firmus plans to allocate about half of its initial public offering (IPO), which could raise up to $5.5 billion including the over-allotment option, to selected existing strategic and financial investors, according to two people familiar with the matter.
The investors who are expected to receive allocations were not identified. Firmus has previously said that its investors include Nvidia, Coatue, Blackstone and Jane Street.
In an $2 billion strategic equity round announced in August, Firmus said Nvidia and Coatue made follow-on investments, while Blackstone and Jane Street also participated.
The planned IPO would be the second-largest Australian-listed IPO on record, behind Telstra’s $10 billion share sale in 1997. Indications of interest have already exceeded the number of shares available in the offering, one of the people said.
Bookbuilding for the IPO is scheduled to begin on Tuesday, while the company’s shares are due to start trading on the Australian Securities Exchange on October 23. The banks involved in the offering are now expected to close the institutional bookbuild on Thursday, a day earlier than the Friday closing date specified in the term sheet.
Firmus has fixed the IPO share price at A$11 ($7.65), giving the company a valuation of about $30.6 billion, according to the term sheet reviewed by Reuters.
The two people familiar with the matter declined to be named because the details are private. Firmus said in an email it had “no comment or further detail to provide at this time.”
The company is scheduled to lodge its prospectus on October 12. Bank of America, JPMorgan, Morgan Stanley and Morgans are leading the IPO.
Firmus’ valuation has nearly tripled since its August funding round, when the company was valued at around $10.5 billion post-money. The sharp increase reflects growing investor interest in companies developing infrastructure for artificial intelligence and high-performance computing.
Headquartered in Sydney, Firmus is an AI-infrastructure and cloud-services company that designs and operates modular AI factories using proprietary energy and cooling technology. The company currently operates one data centre in Melbourne and one in Singapore.
The planned IPO comes as Firmus expands its data centre footprint to meet rising demand for AI computing capacity. Its existing investors include major technology and financial firms, with Nvidia and Coatue having made follow-on investments during the company’s August strategic funding round.
The allocation of about half of the IPO to existing investors could allow selected current backers to increase or maintain their holdings as Firmus moves towards its planned listing.
The company’s upcoming listing is expected to draw significant institutional investor interest, with indications of demand already exceeding the shares available in the offering. The final allocation and investor participation will become clearer as the bookbuilding process progresses.
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