Source : Perth Now news
AI data centre company Firmus is facing a $1bn headache that could result in its $44bn valuation being slashed before it even lists on the ASX.
The Singapore-based tech company was co-founded by Australian billionaire Oliver Curtis – the husband of PR queen Roxy Jacenko – as well as his father Nick Curtis, and Tim Rosenfield and Jonathan Levee.
The company’s initial public offering (IPO) was floated at $11 a share, but a hesitant market could lead to shares being repriced at $8.25.
That represents about a $1.3bn wipeout from its valuation.
Firmus Technologies co-founders Oliver Curtis and Tim Rosenfield. Picture: Supplied
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Firmus Technologies co-founders Oliver Curtis and Tim Rosenfield. Supplied
Credit: Supplied
The company was due to make it ASX debut later this month and billions of dollars for its co-founders in the process.
Firmus’ valuation was priced at $44bn and the company planned on raising $7bn through the IPO.
Moomoo chief market strategist Tapas Strickland told News24 investors had fundamental questions about the company, which made its “lofty valuation … look absolutely extreme.”
Mr Strickland said the company only had about $50m in revenue and was inexperienced in developing data centres.
The Firmus Technologies site at St Leonards, a suburb in Launceston. Picture: Supplied
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The Firmus Technologies site at St Leonards, a suburb in Launceston. Supplied
Credit: News Corp Australia
“Firmus hasn’t actually completed a full data centre yet, and all the revenue, and all the projected revenue is all about them completing data centres,” he said.
“There’s massive execution risk given it’s a relatively new player in this area.”
The market expert said a Canberra data centre pulled out of a $78bn venture with Firmus that planned to build data centres across Australia.
He said the company operated a data centre in Singapore, another data centre was rented in Melbourne, one flooded, and they were building one in Tasmania.
“This is a relatively small company to be seeking such a large valuation as $44bn,” he said.
Firmus’ St Leonards research and development lab. Picture: Supplied
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Firmus’ St Leonards research and development lab. Supplied
Credit: News Corp Australia
A valuation plunge would be a major blow for the company and intensify debate over the risks of an AI bubble.
Ten Cap Fund Manager Jun Bei Liu told The Australian Firmus was a very divisive story.
“The company hasn’t built a lot of its assets yet. So you need to assess how much you pay for some of those future prospects,” she said.
Curtis, Firmus’ high profile chief executive, was jailed over insider trader more than a decade ago.
The Australian reported he could end up with a stake worth $1bn less, but his multi-billion dollar paper fortune would still earn him a top 40 spot as an Australian rich lister.
