Firmus IPO Priced at $30.6B Valuation, Triple August Level, Amid Investor Doubts
NVDA sits 42% above its 52-week low of $164.27.
Summary
Firmus, an Australian data centre operator backed by Nvidia and Blackstone, priced its IPO at A$11 per share, implying a $30.6 billion equity valuation—nearly triple the $10.5 billion valuation from a fundraising round just two months ago. The $5 billion offering is Australia's second-largest ever, but several institutional investors are publicly questioning the valuation, citing an unproven track record, $30 billion in debt, and ambitious earnings projections of $5 billion annually within five years. Indicative orders already exceed the deal size, and bookbuilding begins Tuesday with trading expected October 23. For Nvidia, this is a portfolio company IPO that could validate its AI data centre investments, but the investor skepticism highlights execution risk in the sector. Watch for final pricing and early trading performance on October 23 as a read on AI infrastructure demand.
At the time of this announcement, NVDA was trading at $233.47 on NASDAQ in the Technology sector, with a market capitalization of approximately $5.6T. The 52-week trading range was $164.27 to $236.54. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Reuters.