The decision to abandon Firmus's blockbuster Australian IPO has sent shockwaves through global stock markets, highlighting growing concerns over AI valuations and debt levels. Backed by Nvidia and Blackstone, Firmus pulled its planned listing that would have valued the company at A$44bn ($30.5bn). Days later, Air Trunk cancelled a Singapore REIT listing, citing market conditions.
The turmoil follows a sharp downturn in chip and AI stocks driven by inflation fears and excessive borrowing. Core Weave CEO Mike Intrator blamed the Australian IPO failures for hurting his company’s share price, noting that rivals were raising vast sums without comparable execution or revenue. Investor confidence has waned, with Core Weave bonds trading below 80 cents on the dollar.
These setbacks threaten Australia’s ambitions to become a global AI hub, despite government efforts to attract firms like Anthropic and OpenAI. Assistant Minister Andrew Charlton touted Australia’s stable politics, Five Eyes ties, and renewable energy as key advantages. Local investors like Macquarie and super funds have long supported digital infrastructure ventures.
Firmus, founded in 2019 as a Bitcoin miner before pivoting to AI, was co-founded by Oliver Curtis and Tim Rosenfield. Curtis, son of former Macquarie banker Nick Curtis, served time for insider trading in 2016 — a factor some say contributed to investor skepticism amid a cultural 'tall poppy' syndrome.
Source: Financial Times Companies · Summarized by HeadlinesBriefing