Firmus prepares $7bn ASX float as Tasmania datacentre backlash grows

Firmus Technologies is preparing to list on the ASX later this month in an initial public offering designed to raise $7bn, according to Guardian Australia. That would place it second only to Telstra's $14bn share sale in 1997 among Australian floats, and among the five largest globally this year. The company's pitch rests on building liquid-cooled datacentres across Asia-Pacific alongside AI chip maker Nvidia, which is both an investor and a hardware supplier.

The float arrives amid local opposition in Tasmania, where Firmus's 104-megawatt datacentre at St Leonards, valued at an estimated $2.1bn, was approved by Launceston city councillors in September last year without a public hearing. Residents including Kayla Thompson say they learned of the plans only after construction began, and a protest group argues the community was kept in the dark. A Firmus spokesperson confirmed the company overhauled its community engagement program after strong feedback from locals, saying the input would continue to shape its approach.

Questions are also mounting over the company's valuation. Firmus was worth just under $2bn in a private funding round a year ago but is now targeting a $40bn-plus ASX debut, with analysts floating figures as high as $100bn — which would make it twice Telstra's size. One investment manager who viewed the draft prospectus told Guardian Australia the valuation 'keeps randomly compounding when nothing has really changed', while noting the company currently operates only two facilities, in Melbourne and Singapore, with most of its pipeline unbuilt. The draft prospectus forecasts $5bn in annual earnings once that pipeline progresses. A Firmus spokesperson declined to answer Guardian Australia's questions on the feasibility of the forecast and valuation.

The company's US peers offer a cautionary precedent. A comparable datacentre offering was recently delayed after bankers struggled to find buyers for a valuation of US$50bn or more, the New York Times reported, while Tulsa, New Orleans and Birmingham have imposed temporary bans on permits and construction. In Sydney, Goodman Group withdrew plans for a datacentre near a public school following local opposition.

Concerns have also been raised about the structure of the offer. Firmus is using a small free float, letting founders and early investors retain most shares initially, and there are no escrow arrangements for major backers such as Blackstone and Jane Street. Rob Talevski, chief executive of Webull Securities Australia, said retail investors risk becoming the 'exit strategy' for institutional backers. Founders Oliver Curtis, who has served prison time for insider trading, his cousin Tim Rosenfield and Curtis's former brother-in-law Jonathan Levee can begin selling some holdings six months after listing if the stock rallies.

Richard Hemming of Under The Radar Report said the many parties pushing for a successful float — brokers, investment banks and early investors — have left retail risks understated, calling the comparison with Telstra 'gobsmacking'. Firmus has responded to negative coverage partly by sponsoring Tasmanian sporting teams including the Devils AFL side, Cricket Tasmania, the JackJumpers and the Jewels, a strategy RMIT dean Emma Sherry described as a classic case of sportswashing. Firmus rejected that characterisation, saying its partnerships are not a substitute for genuine community engagement.