IPO roundup: Firmus collapse sends AI funding warning; DeepSeek seeking $12 bln

Chinese AI start-up DeepSeek is close to raising at least $12 billion at a $75 billion valuation ahead of an IPO that could take place in early 2027. Rival Moonshot AI has completed a funding round at a $50 billion valuation and is preparing to raise up to $5 billion through a Hong Kong listing. Meanwhile, Nvidia-backed Australian AI data center operator Firmus has canceled its IPO because of worse-than-expected demand. Here is our roundup of the latest main IPO news.

DeepSeek, the Chinese AI company, is close to raising at least RMB80 billion ($12 billion) in a new funding round ahead of an IPO that could take place in early 2027, sources told Bloomberg. The start-up initially sought around RMB50 billion, but strong investor demand following the release of its new V4 Flash model could push the final amount to RMB100 billion ($15 billion). Tencent and battery maker CATL are among the largest participants in the round, which could value DeepSeek at RMB500 billion ($75 billion). Once the funding round closes, DeepSeek intends to begin preparing to go public.

Moonshot AI, the Chinese AI company, has completed its final private funding round at a valuation of around $50 billion and is preparing for an IPO in Hong Kong in the first quarter of 2027, sources told Bloomberg. The company, whose Kimi K3 model competes with offerings from OpenAI and Anthropic, hopes to raise up to $5 billion in the listing and could begin preliminary meetings with investors as early as October. Moonshot was valued at $31.5 billion this summer, while its annual recurring revenue (ARR) is expected to rise from the current $1 billion to $2 billion by December. The IPO’s timing could change, however, as Chinese regulators step up oversight and launch a data-security probe into Moonshot and DeepSeek.

Belron, the world’s largest vehicle glass repair and replacement company and owner of the Safelite, Autoglass, and Carglass brands, has selected banks for a potential IPO that could be Europe’s largest in years, sources told Bloomberg. BofA, BNP Paribas, JPMorgan, and Morgan Stanley will arrange the offering. The company is considering an Amsterdam listing as early as 2027 at a valuation of more than EUR30 billion ($34 billion). Belron carried out 17 million jobs last year and generated EUR6.7 billion in revenue. Belgium’s D’Ieteren Group owns a controlling stake, while other shareholders include BlackRock and GIC.

Solidigm, the U.S. flash memory subsidiary of South Korea’s SK Hynix, has selected banks for a U.S. IPO that could take place in 2027, sources told Bloomberg. Goldman Sachs, Morgan Stanley, JPMorgan, Citigroup, and UBS will arrange the offering. The company hopes to raise around $10 billion at a valuation of up to $100 billion and is also preparing a pre-IPO funding round. Solidigm, created in 2021 after SK Hynix acquired Intel’s flash memory business, specializes in drives for AI data centers. Its customers include CoreWeave, Dell, and Tencent.

City Therapeutics, the U.S. biotech developing RNA interference-based drugs, plans to raise more than $184 million in an IPO on the Nasdaq, Bloomberg reports. The company intends to offer 9.7 million shares at $17-19 apiece, implying a valuation of up to $956 million. Its investors include Arch Venture Partners and Fidelity. City is developing treatments for thromboembolic diseases and inherited eye diseases.

Refresco, the Dutch beverage manufacturer owned by investment firm KKR, is considering an IPO in the U.S. or Europe at a valuation of more than $10 billion, sources told Reuters. The company has already held talks with investment banks about preparing an offering, but no final decision has been made. KKR acquired Refresco in 2022 for around $8 billion. The company, which works with Walmart, Aldi, Coca-Cola, and PepsiCo, operates 85 production facilities across North America, Europe, and Australia.

Firmus, the Nvidia-backed Australian AI data center operator, has withdrawn its planned IPO, citing volatility and unfavorable market conditions. The company’s board determined that the proposed offering terms did not reflect its long-term growth outlook. Firmus had sought to raise $5.5 billion at a valuation of more than $30 billion. According to Reuters, the offering could have been the second largest in Australian history. The company is now discussing a potential $2-3 billion private funding round with existing investors, sources told Bloomberg. In August, Firmus raised $2 billion from investors including Nvidia, Blackstone, and Coatue at a valuation of more than $10.5 billion.

Airtel Money, the payments provider, saw its shares fall 5% in their London trading debut. Its IPO was London’s largest in five years, Bloomberg reports: Airtel Money shareholders raised around GBP529 million ($703 million), valuing the business at GBP5.2 billion ($6.9 billion). During preparations for the IPO, the company twice lowered its valuation expectations to attract investors. The weak debut was another warning sign for the UK IPO market, which has endured a prolonged slump amid volatility and concerns over interest rates and the AI boom, Bloomberg notes. Nevertheless, Airtel Money’s offering was oversubscribed multiple times. The company provides payment services across Africa, serves around 53 million monthly active users, and processed $213 billion in transactions in the 12 months through June.

TRex Bio, the U.S. biotech focused on autoimmune and inflammatory diseases, raised $116.7 million in an IPO on the Nasdaq, Bloomberg reports. The offering priced at $14 per share, the bottom of the marketed range, valuing the company at $384 million. Its investors include Eli Lilly, Pfizer Ventures, and Johnson & Johnson Innovation. TRex will use the proceeds to develop experimental drugs, including treatments for atopic dermatitis.

Firmus, the Nvidia-backed Australian data center operator, sent a warning signal to the AI market with the postponement of its IPO amid concerns over inflated company valuations, Bloomberg reports. Analysts say investors still believe in AI’s potential but are no longer willing to pay any price for companies that spend billions on infrastructure and promise profits only years down the road. Firmus had sought to raise $5.5 billion at a valuation of around $30 billion versus $10.5 billion in August. Yet its fiscal02026 revenue totaled just $51 million, and only 46 MW of its planned 912 MW of capacity has been built. Analysts at Rayliant Global Advisors warn that Firmus may not be the last AI company whose IPO disappoints investors as enthusiasm for the technology wanes.

Anthropic presents investors considering participating in its IPO with an unusual problem: how to value a company whose technology could potentially threaten humanity, Bloomberg reports. The start-up hopes to go public at a valuation of up to $2 trillion, but analysts warn of potentially enormous liabilities if AI causes harm, Bloomberg notes. Slow Ventures partner Sam Lessin has proposed requiring AI companies to set aside $1 trillion each to cover potential losses that could reach $2-4 trillion. Experts nevertheless believe these concerns are unlikely to derail Anthropic’s IPO, while safety spending could strengthen its competitive position. The main problem for investors is the inability to quantify these risks because of a lack of legal precedent and clear regulation.