Ex-banker Oliver Curtis's redemption story hit a setback as Firmus Grid Ltd. pulled its planned IPO on Friday after investors grew wary of its targeted $30 billion valuation. The abruptly halted listing underscores a broader pushback against the cost of financing AI infrastructure as interest rates rise. Firmus, which relies on a continuous influx of new capital, will now explore alternatives. The company said the terms did not "appropriately reflect the strength of the business and long-term outlook." Whether that outlook holds will depend on Curtis's ability to raise new capital for his second act.
Firmus targeted a valuation of $30 billion, which would have vaulted Curtis into the ranks of Australia's richest people, even with a relatively small holding. Curtis, a former banker convicted of insider trading in 2013, founded Firmus in 2019 after his release from prison. What began as a Bitcoin mining operation in Tasmania eventually turned into a provider of AI infrastructure using special cooling technology. The company was valued at $5.5 billion in an April round led by Coatue Management and backed by Nvidia. It has partnerships with Meta and OpenAI and has expanded into Singapore, Indonesia, and Malaysia. It also secured $2 billion in commitments from investors including Jane Street in August.
Emanuel Datt of Datt Capital called the valuation "way too aggressive." Curtis attended Saint Ignatius' College, Riverview, the alma mater to cricketers, industrialists, and a former Australian prime minister. The listing's collapse marks a dramatic turn for Firmus, which had just days earlier signaled ample investor demand for a deal valuing it at $30 billion.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing