Australian company Firmus Technologies is preparing for an initial public offering (IPO) on the ASX later this month, aiming to raise $7bn from investors. This anticipated float is on track to be the second-largest IPO in Australian history, behind Telstra's 1997 share sale.
The company, which develops AI factories and datacentres, has faced community opposition in Tasmania. Residents, including Kayla Thompson in Launceston, expressed frustration that they were not aware of Firmus's plans to build datacentres until after construction began. A 104-megawatt datacentre in St Leonards received fast-tracked approval in September last year without a public hearing.
Firmus acknowledged community feedback, with a spokesperson confirming an overhaul of its community engagement program after strong feedback from Launceston locals. However, investment analysts have raised concerns about the company's valuation, which has surged from under $2bn a year ago to a targeted $40bn-plus for its ASX debut, with some analysts suggesting figures as high as $100bn.
One investment manager, who viewed the company's draft prospectus, described its earnings forecast of $5bn annually once its development pipeline progresses as "a little bit of a fairytale." Firmus currently operates only two facilities, in Melbourne and Singapore, with the majority of its planned developments unbuilt. A Firmus spokesperson declined to comment on the feasibility of its earnings forecast and valuation.
Concerns have also been raised about the potential risks for retail investors. Rob Talevski, chief executive of Webull Securities Australia, suggested that retail investors could become an "exit strategy" for early institutional investors, such as Blackstone and Jane Street, as there are no escrow arrangements preventing them from selling their stakes immediately after the listing.