By John Stensholt
Firmus investors could double their money if its blockbuster ASX float gets away mid-year with a $12bn valuation attached, and they are free to sell on day one, according to correspondence circulated to prospective shareholders.
The Australian can reveal investors in Firmus, the data centre technology business co-founded by new billionaire and convicted insider trader Oliver Curtis, have been told the initial public offering is “on track for June or July” and expected to be priced “40 per cent to 100 per cent” above the current value.
Privately-held Firmus is valued at $6bn after a fundraising round late last year validated by recent share register transactions, including billionaire James Packer acquiring a parcel of stock.
The same investor note says there are some shares available to purchase at the current price of $145 apiece, and that at this stage there will be no escrow period enforced for pre-IPO shareholders.
If the float achieves the 40 per cent to 100 per cent increase claimed, it would mean Firmus has a valuation of between $8bn and $12bn in its market debut. It could raise up to $3bn of capital as part of the public offering.
The company is considered one of the hottest ASX prospects in years, with the local exchange looking to have beaten off competition from the likes of the US Nasdaq for the listing.
Firmus investors have also been told global AI chip company Nvidia, which will supply Firmus with its chips used to power AI applications, bought more shares at the same time Mr Packer reportedly agreed to spend $50m to invest in Firmus.
Mr Curtis, 40, debuted on The List – Australia’s Richest 250 with an estimated paper fortune of $1.29bn thanks to the spectacular rise of Firmus which he started with his cousin Tim Rosenfield, following a year in jail for insider trading. Married to prominent publicist Roxy Jacenko, Mr Curtis was released in 2016.
Firmus claims to have developed software and cooling technology that uses 33 per cent less energy and 99 per cent less water than other data centres.
It has its technology working in Singapore – where Curtis resides – and is building a data centre assembly in Tasmania where its technology will power, train and run AI systems.
Firmus raised about $500m from investors for its $6bn valuation last November, and has been steadily attracting new interest to its share register, including Richest 250 member Wes Maas – who in February announced his ASX-listed Maas Group would sell its building materials division for $1.7bn and bought a $100m stake in Firmus with the proceeds.
The Australian’s Margin Call column this week revealed former Bingo Industries boss Daniel Tartak is also a new Firmus investor. The Tartaks, through the family trust headed by Mark Tartak, have acquired about a $3m stake.
Daniel Tartak was in February 2024 sentenced to 400 hours of community service and banned from running companies for five years for his role in a price fixing cartel for waste management services.
Firmus, whose third co-founder is former Curtis brother-in-law Jonathan Levee, has reportedly had discussions with the ASX about meeting the exchange’s “good fame and character” requirements.
Curtis is said to have shown contrition about his offending – which took place when he was 21 – and provided references from backers and existing investors.
Among his biggest supporters is Ashok Jacob’s Ellerston Capital with a stake approaching 7 per cent, and Regal, headed by funds management boss Phil King. Regal is understood to have invested about $10m via a convertible note in Firmus about five years ago when the company was still planning a future as a Bitcoin miner.
With Firmus having surged in value since, Regal’s stake is worth at least 15 times more than its initial investment – and potentially far more should the latest claims around valuation be realised.
Other investors include well known investment names such as Paradice Investment Management, Wilson Asset Management, Argo Investments, Lennox Capital Partners, Unisuper, Wingate and Archibald Capital.
Morgans has been a long-time Firmus backer, including acting as sole lead manager on its raising last year. Firmus is undertaking a global and then local roadshow in April to meet potential investors across the US, UK, Asia and then back in Australia.
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