Australia's Firmus prices shares to raise $5 billion, term sheet shows

• Firmus has an enterprise value of approximately $60 billion when including its estimated $30 billion in debt
• Indicative orders from potential investors already exceed the deal size, with an additional $500 million possible through an over-allotment option
• The company operates two data centres in Australia and Singapore with five more under development across Asia-Pacific, focusing on AI infrastructure rollout

Summary: Firmus Prices $5 Billion Australian IPO

Key Transaction Details:

Australian data centre operator Firmus has priced shares to raise $5 billion in what will be Australia's second-largest IPO in history. The offering values the company's equity at $30.6 billion, with an enterprise value of approximately $60 billion when including an estimated $30 billion in debt.

Transaction Timeline:

• Book building begins Tuesday, closes Friday
• Trading commences on Australian Securities Exchange: October 23
• Indicative orders already exceed deal size
• Additional $500 million available through over-allotment (greenshoe) option

Company Profile:

Firmus operates two data centres in Australia and Singapore, with five more under development across Asia-Pacific. The company raised $2 billion in equity funding in August to expand AI data centre facilities ("AI factories") in the region, achieving a post-money valuation above $10.5 billion at that time.

Market Context:

At $5 billion, this IPO ranks as the fourth-largest globally in 2024, behind SpaceX, CXMT Corp, and Cerebras Systems. Among Australian-listed IPOs, only Telstra's $10 billion offering exceeds it historically.

Sector Implications:

The substantial valuation reflects strong investor appetite for data centre infrastructure, particularly facilities supporting AI applications in the Asia-Pacific region. The deal's oversubscription signals robust market confidence despite the company's significant debt load.

The pricing structure follows typical Australian IPO practice, setting share price before formal book building begins, based on investor consultations during roadshows. Firmus declined to comment on the pricing details.