Oliver Curtis's Firmus Technologies Faces IPO Uncertainty Amid Valuation Drop
Plans for one of Australia's largest stock market floats for the AI infrastructure company are reportedly at risk of delay or cancellation.
The planned Australian Securities Exchange (ASX) listing of Firmus Technologies, an AI infrastructure company founded by Oliver Curtis, the husband of publicist Roxy Jacenko, is facing significant uncertainty. Reports indicate the initial public offering (IPO) could be revalued, delayed, or even called off.
Sources suggest Firmus Technologies' valuation may be closer to $30 billion, a substantial decrease from the initially targeted $43 billion. This potential revaluation could also impact the proposed share price, potentially dropping from around $11 to $8.75 per share. The company, which provides data centers and computer chips for AI models, had secured deals with major AI firms including OpenAI, Nvidia, and Meta in September.
Firmus Technologies was established in 2019 by Curtis and his cousin, Tom Rosenfield. The company's operations include data centers equipped with powerful computer chips necessary for training AI models and running applications like ChatGPT. Its ASX listing was initially slated for October 23.
Adding to the challenges, a New York hedge fund has reportedly declined to participate in the float, citing Oliver Curtis's past insider trading conviction, despite his regulatory clearance. Curtis was convicted in June 2016 for conspiracy to commit insider trading, receiving a 12-month sentence after being found guilty of using confidential information provided by a former friend. The offense occurred when Curtis was 21, though he was 30 at the time of his conviction.
Industry analysts have expressed skepticism regarding Firmus's previous valuation. Greg Canavan of Canavan Capital Partners described the $43 billion valuation as 'absurd' and dismissed claims of 'tall poppy syndrome,' calling the company 'horrendously priced.' Marcus Padley, another analyst, deemed the previous valuation 'delusional,' noting that major industry funds have refused to participate and that several other AI companies, including OpenAI, have delayed their own IPOs in the US.
Curtis was recently listed on The Australian's 'Richest 250' list with an estimated net worth of $1.29 billion. The potential IPO of Firmus Technologies was anticipated to be the second-largest float in Australian history based on its original valuation.