Shares of Australian construction services provider Maas Group fell nearly 11% on Friday after Nvidia-backed data-centre operator Firmus withdrew its planned $5 billion initial public offering (IPO), raising concerns over the value of Maas's investment in the company, according to a report by Reuters.
Maas shares dropped as much as 10.7% to A$4.43, their lowest level in five months, after trading resumed following a halt pending an update on Firmus's IPO and its contracts with the data-centre operator, the report stated.
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According to Reuters, Maas holds a 3.2% stake in Firmus and also supplies the company through its JLE Group electrical infrastructure business, leaving it exposed to both the investment and operational implications of the abandoned listing.
Firmus withdrew its listing application earlier on Friday, citing market volatility and conditions that it said would not adequately reflect its business strength and long-term growth prospects. The company, which counts OpenAI as an anchor customer, plans to pursue private funding and explore alternative public and private capital-raising options.
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Despite the IPO setback, Maas said its contracts with Firmus remained in place. Its JLE Group unit continues to deliver modular Power Cubes and related electrical infrastructure for Firmus's artificial intelligence factory projects.
According to Reuters, Maas has work orders worth approximately A$1.1 billion ($767.91 million) across fiscal 2026 and 2027. The company said it had received A$373 million in payments under the contracts and expected to complete the work by the end of 2027.
The clarification follows a sharp selloff on Thursday, when Maas shares slumped 22.4% after a report that Firmus was reconsidering the terms of its proposed listing. The decline wiped approximately A$517 million off Maas's market value. The stock has fallen more than 31% so far this week, putting it on course for its worst weekly performance on record.
Firmus IPO withdrawal highlights AI valuation concerns
Firmus had planned to price its shares at A$11 apiece, valuing the company's equity at approximately A$30.6 billion. That would have represented nearly three times its A$10.5 billion valuation from a funding round in August.
The proposed listing would have been Australia's second-largest IPO on record, highlighting the scale of investor interest in AI infrastructure businesses before market conditions disrupted the deal.
The withdrawal underscores growing investor caution over highly valued AI infrastructure companies, particularly those pursuing aggressive expansion plans that require substantial capital investment.
For Maas, the immediate concern is the potential impact on the value of its Firmus stake, while its ongoing electrical infrastructure contracts offer some visibility into future revenue. However, the abandoned IPO has introduced fresh uncertainty around Firmus's valuation and its funding strategy as it seeks alternative sources of capital to support its expansion.
(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)
