Firmus pulls $5 billion offering amid growing scrutiny of AI financing
Key Facts
Nvidia-backed Australian company Firmus withdrew a public offering that had aimed to raise $5 billion in October 2026, according to Reuters, amid growing investor scrutiny of artificial intelligence infrastructure companies. Concerns about the company included its lack of a track record in building AI data centers, the agency reported. Those concerns centered on Firmus's experience in delivering the facilities underpinning its business, as data center company valuations face a broader reassessment. Reuters described rising borrowing costs as being "at the heart of the renewed scrutiny" of these companies' valuations. On equity financing, the agency reported a decline in funds raised by Asia's data center sector since the start of the year. The decline stood at 4.6% compared with the same period in 2025, according to its report, as plans to tap stock market investors ran into difficulties.
In Singapore, Blackstone-backed AirTrunk postponed a real estate investment trust offering that could have raised about $1.5 billion, according to sources cited by Reuters. The postponement concerns the listing of the company's property trust, part of financing plans tied to the data center sector. In another case, Solidigm announced it had halted its review of pre-IPO financing options and a potential initial public offering, according to a statement published by SK Hynix. The statement linked the reassessment of those options to capital market conditions and share price trends. Alongside the halt to the review, SK Hynix reaffirmed the continuing need for investment to meet growing demand. It said Solidigm's existing facilities had "limited capacity" to meet that demand, requiring additional production facilities in the United States.
In debt markets, the yield on CoreWeave bonds issued in April reached about 15% during the October 15, 2026 session, according to Reuters, as concerns mounted over the company's debt-financed expansion. The bond yield came as the agency estimated the company's debt at about $50 billion. The pressure also extended to CoreWeave shares, with Investing reporting that the stock had lost about 27% of its value in the month preceding its report. The share price decline and bond movements coincided with concerns over whether future revenue could keep pace with expansion spending, according to Reuters coverage. Nvidia chief Jensen Huang, meanwhile, defended CoreWeave's financial position, offering a more positive assessment of the company amid those concerns. Huang said, according to the agency, that "CoreWeave's financial strength is improving every day."
After withdrawing its offering, Firmus said it would pursue a private funding round, according to Reuters, making that round its chosen route for raising funds instead of an IPO. Investing, citing The Information, reported that Nvidia was in talks to invest hundreds of millions of dollars in Firmus following the withdrawal. The move remains at the discussion stage over a potential investment by Firmus's backer. AirTrunk, meanwhile, has not set a new date for launching its property trust offering in Singapore, according to Reuters sources. One source said the company was targeting completion of the listing early the following year, after postponing the plan in October. At SK Hynix's next scheduled announcement, the company will release its third-quarter 2026 results on October 28, 2026. Its investor invitation specified that the earnings release would be published before 9:00 a.m. Seoul time, following the announcement that Solidigm had halted its review of pre-IPO financing options and a potential IPO.