Firmus allocates half of $5.5B IPO to existing investors ahead of ASX debut

Firmus, an Australian data centre operator built around artificial intelligence infrastructure, is preparing to go public in a way that rewards the investors who got in early. The company plans to list on the Australian Securities Exchange on October 23 at A$11 per share, raising up to $5.5 billion in what will become the second-largest IPO in Australian history. But here's the strategic wrinkle: roughly half of that capital will flow directly to existing shareholders—a deliberate choice that signals confidence from the company's backers and locks in their gains before the broader market gets a chance.

The existing investors receiving preferential allocations include some of the most recognizable names in technology and finance. Nvidia, the chip giant whose processors power AI systems worldwide, has already made follow-on investments in the company. So have Coatue, the venture capital firm; Blackstone, the global asset manager; and Jane Street, the quantitative trading firm. These four participated in a $2 billion strategic funding round in August, and now they're positioned to receive shares directly from the IPO rather than buying them in the open market like other investors. The company has not publicly identified which shareholders will receive allocations or in what amounts.

The valuation tells its own story about momentum. When Firmus closed that August funding round, the company was valued at approximately $10.5 billion. Three months later, as it prepares to list, that valuation has nearly tripled to $30.6 billion. That jump reflects both the scarcity of AI infrastructure capacity and the market's hunger for exposure to companies building the physical backbone that artificial intelligence requires. Firmus operates data centres in Melbourne and Singapore, facilities designed around proprietary energy and cooling technology meant to run AI workloads efficiently at scale.

Demand for shares has already outpaced supply. Indications of interest from institutional investors have exceeded the number of shares available in the offering, according to people familiar with the matter. The bookbuilding process—the period during which banks collect orders from large investors—was originally scheduled to close on Friday, October 18. But the banks leading the deal, Bank of America, JPMorgan, Morgan Stanley, and Morgans, now expect to close it a day early, on Thursday. That acceleration is a straightforward signal: there are more buyers than sellers.

The share price of A$11 (equivalent to about $7.65 USD) was fixed based on a term sheet reviewed by Reuters. At that price, the company's market capitalization reaches $30.6 billion, making this offering the largest Australian IPO since Telstra's $10 billion share sale in 1997. Firmus is scheduled to lodge its prospectus with regulators on October 12, giving the market two weeks to review the company's financials and risk factors before trading begins.

When asked about the allocation strategy and other details, Firmus declined to comment beyond a brief statement saying it had nothing further to provide at this time. The people with knowledge of the allocation plan spoke on condition of anonymity because the matter was not yet public. What remains to be seen is whether the strong institutional demand holds once retail investors and the broader market get their first chance to trade the stock on October 23. The company's decision to reserve half the IPO for existing investors means those early backers will have already locked in their positions—and their returns—before the opening bell rings.