jailed for 12 months in 2016<\/a> for a 2007 insider trading scheme.<\/p>\nPortfolio manager ‘steering clear’<\/p>\n
Ten Cap portfolio manager Jun Bei Liu said she was steering clear of the Firmus IPO, concerned about what she said was an “unprecedented lack of detail” being disclosed and enormous structural risks.<\/p>\n
“Firmus is probably one of the most polarising IPOs I have ever seen,” she observed.<\/p>\n
“I think Firmus is a very high-risk proposition \u2014 very high profile, but with enormous risk involved.”<\/p>\n
She said 97 per cent of the data centre capacity they had promised had not been built.<\/p>\n
“They might deliver cheaper earnings in two years if they build what they promise, but that’s speculative,” she said.<\/p>\n
![\"Woman](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/10\/87d505695454ed951482d62a5bceb189.jpeg\")
<\/p>\n
Ten Cap’s Jun Bei Liu says she won’t be taking up the Firmus IPO. (ABC News: John Gunn)<\/p>\n
“We much prefer to be in the companies that actually build those data centres \u2014 the engineers, the electrical contractors.<\/p>\n
“There are a lot of those smaller businesses now benefiting from the huge build-out that Australia is about to see.”Caution over Firmus ‘euphoria’<\/p>\n
Morningstar senior market strategist Lochlan Halloway said he saw “the hallmarks of the boom phase \u2026 if not outright euphoria” because of Firmus’s wild increase in valuation in such a short period of time.<\/p>\n
The company’s valuation surged from about $6.9 billion in April and was now at $15.5 billion.<\/p>\n
“Not bad for a start-up,” he said.<\/p>\n
Mr Halloway was particularly concerned with the company’s debt.<\/p>\n
“The neoclouds are heavily geared. The model is to borrow against customer contracts to buy chips, then use the rent to repay the loans,” he said in an economic note.<\/p>\n
![\"A](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/10\/5335ad4232fc901c5d6b963b09481ea2.jpeg\")
<\/p>\n
Lochlan Halloway says he’s not written Firmus off entirely. (ABC News)<\/p>\n
Once its data centres are built, Firmus expects to be carrying about US$30 billion of debt, around six times the US$5 billion of operating earnings it forecasts for 2028.<\/p>\n
“Borrowed money alone does not make a bubble, and plenty of infrastructure is sensibly funded with debt. But credit is the common thread running through essentially every boom and bust cycle,” he wrote.<\/p>\n
But he did not write the company off completely.<\/p>\n
“For investors, what matters is how that fair value compares to the float price,” Mr Halloway said.’Ambitious’ data centres plans need major local power upgrades<\/p>\n
Accela Research published one of the first comprehensive reports on data centres in January this year.<\/p>\n
Its lead data centre analyst Naomi Wagura described the company has having “ambitious growth plans” that could “significantly reshape electricity infrastructure” in areas where its data centres would locate.<\/p>\n
AI data centre provider could become one of Australia’s biggest stock floats<\/a><\/p>\nAI data centre developer Firmus Technologies is seeking investors ahead of a multi-billion-dollar share market float next month.<\/p>\n
In Tasmania, Firmus’s three planned data centres would make it the state’s largest energy consumer, needing some 444 megawatts if they went ahead, and would crucially require the island state to add extra generation.<\/p>\n
“This infrastructure investment needs binding customer commitments and realistic demand forecasts, with clear arrangements for who pays if demand arrives late or falls short,” Ms Wagura said.<\/p>\n
And while there were clear potential benefits to locals, she cautioned there also needed to be “clear disclosure and enforceable obligations”.<\/p>\n
The company is scheduled to float on the ASX on October 23.<\/p>\n
Loading…<\/p>\n","protected":false},"excerpt":{"rendered":"It was touted as the biggest float since Telstra in the 1990s, but the share market float of…\n","protected":false},"author":2,"featured_media":920344,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[64,63,99,1772,277395,2944,2945,462603,277396],"class_list":["post-920343","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-au","tag-australia","tag-business","tag-data-centres","tag-firmus","tag-initial-public-offering","tag-ipo","tag-jacenko","tag-oliver-curtis"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/920343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=920343"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/920343\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/920344"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=920343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=920343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=920343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}