Firmus withdraws planned Australian IPO, seeks private funding

Firmus has withdrawn its planned Australian initial public offering and said it will seek private-market funding, ending a proposed share sale that was expected to rank among the country’s largest listings. The data centre operator attributed the decision to market volatility and prevailing conditions, while investors cited concerns about its valuation, debt and expansion plans. In a statement, Firmus said the offer terms did not reflect the strength of its business and long-term growth outlook, and that proceeding would not be in the best interests of the company and its shareholders. It said it would pursue private-market capital and consider other public and private funding options. The amount and terms of any new financing have not been announced. The proposed offer was priced at A$11 a share. Firmus had been seeking a valuation of about US$30 billion, with Reuters reporting a planned equity valuation of US$30.6 billion. The planned capital raise was reported as US$5 billion in some accounts and up to A$5.5 billion in another. The offer was expected to be Australia’s second-largest IPO, behind Telstra’s 1997 flotation.