US bank linked to AI group’s ASX plans

Artificial intelligence infrastructure group Firmus Technologies plans to raise about $1bn.

Artificial intelligence infrastructure group Firmus Technologies is believed to be accelerating plans for a $1bn-plus initial public offering to happen in the first half of next year in what could be one of the largest new listings on the Australian Securities Exchange for years.

Sources believe a Wall Street investment bank is already in the group’s corner and the deal has been pencilled in for the first half of next year.

The top American banks known to be able to fund big deals with their balance sheets are JPMorgan and Citi, which sources believed could be well placed to win a mandate after Wall Street banks have been pitching relentlessly.

Firmus plans to raise around $1bn, sources say, after a recent funding round pegged its value at $1.85bn.

AI global giant Nvidia has a stake in Firmus and is in Sydney for an event this week, when the group was believed to be making an update on its IPO plans.

Its latest pre-IPO raise of $330m through Morgans and advised by Highbury Partnership valued the business at $1.85bn in what was one of the largest equity capital raisings this year.

Firmus describes itself as an Australian company that is a world leader in integrated, “liquid-everywhere” AI factories and the provision of Graphics Processing Units-as-a-Service to global hyperscalers and other major customers.

The recent capital raise was to fund the development of a renewable-powered AI factory campus in Tasmania.

Among its shareholders are Nvidia, which it counts as a Cloud Partner, and Ellerston Capital. Tim Rosenfield and Oliver Curtis are co-chief executives.

The business was previously chaired by former Telstra director and industry veteran Ted Pretty and is now chaired by ex JPMorgan banker and TPG Telecom executive Grant Dempsey.

Should the business list early next year, as expected, it will hit the market sweet spot when it comes to deals. The float will likely attract groups wanting exposure to the artificial intelligence revolution, with an increasing amount of data storage needed for AI technology.

Blackstone and its backers outlaid $24bn to buy data centre operator AirTrunk in 2024 in what was one of the largest Australian deals of the year.

Goodman Group and Infratil have prospered on the back of their exposure to data centres.

However, it’s worth remembering that DigiCo Infrastructure REIT, backed by David Di Pilla’s HMC Capital, remains below its $5 IPO price with shares closing at $2.94.