Background: Firmus started about seven years ago as a bitcoin miner. Then AI exploded, and the company made a hard pivot. These days, Firmus builds and runs AI data centres packed with Nvidia chips, renting that computing power to companies like OpenAI and Meta.

What happened: Now, Firmus is preparing for its big ASX debut, planning to raise $7 billion at a company valuation of $43.7 billion. This will make Firmus the second-biggest IPO in Australian history (behind Telstra). And that new valuation is a huge jump from the roughly $15 billion valuation from August this year.

What else: Firmus has gone from pitching itself as an Australian AI infrastructure company to an Asian one, with mega-sites planned in Malaysia and Indonesia. These mega-sites are still being built, but are expected to generate around 85% of Firmus' targeted earnings. So it's fair to say, investors are buying heavily off the plans. One small comfort: 42.4% of insider shares will be locked in escrow for now.  

What's the key learning?

💡 Getting into an IPO is one thing... but knowing who can cash out on day one is another. Escrow is a lock-up that stops certain shareholders selling straight after a listing. For Firmus, the founders their families, staff and early funds have about 42% of the company locked up. The founders can only sell 10% of their shares after one year, and another 39.9% after two years.  

💡Interestingly, in manyt big IPOs, it's the private equity owners that are the ones under selling restrictions, like Bain Capital in the Virgin IPO and TDM Growth Partners in the Guzman y Gomez float. Firmus is doing things differently, with Blackstone, Nvidia, and Coatue sitting outside the selling restrictions.  

💡 Firmus is heading into its float with plenty of supposed demand, suggesting new investors aren't too worried.