Nvidia-backed Firmus wraps up IPO bookbuilding as demand softens

Firmus, a company backed by Nvidia, has wrapped up the order-taking phase of its initial public offering, according to Bloomberg, in a signal that demand for the deal was weaker than its supporters might have expected.

Bookbuilding is the period in which institutional investors tell underwriters how many shares they want and at what price. Soft demand at that stage can push an issuer to price at the bottom of its marketed range, cut the number of shares sold, or step back from the listing altogether.

Nvidia's name carries weight in the market, since the chipmaker has invested in a range of businesses tied to computing infrastructure and artificial intelligence. A company with that kind of backer is often treated as a validated story, yet it does not guarantee that public-market investors will pay the valuation sought, especially when sentiment toward new listings is cautious.

How the offering is ultimately priced will be read as a gauge of appetite for AI-linked listings, a corner of the market that has attracted intense attention alongside growing scrutiny of valuations. The reception given to such deals is being watched closely across the market.