Australian engineering and infrastructure company MAAS Group Holdings Ltd (ASX: MGH) saw its shares fall sharply again on Monday, dropping as much as 11.2% intraday to $4.11, the lowest level since April 2.

The decline followed the announcement by NVIDIA-backed artificial intelligence data center operator Firmus that it is cancelling its planned US$5 billion initial public offering (IPO), triggering market concerns over the valuation of MAAS Group's stake in Firmus and the related business orders.

MAAS Group has invested a cumulative $410 million in Firmus and its power infrastructure division holds approximately $1.1 billion in Firmus orders. With the listing plan scrapped, investors are reassessing the risks tied to both the investment and the commercial partnership.

Firmus Cancels US$5 Billion IPO, MAAS Group Faces Three Straight Days of Selling

Firmus announced last Friday that, due to market volatility and current market conditions, it has decided to withdraw its planned IPO of approximately US$5 billion and instead seek funding through private capital markets.

The decision dealt a clear blow to its major investor and commercial partner MAAS Group.

MAAS Group's shares plunged 22.4% last Thursday, fell a further 6.7% last Friday, and extended losses on Monday, dropping as much as 11.2% intraday to $4.11, a more than six-month low.

Over the same period, the S&P/ASX 200 Index rose 0.6% to around 8,754 points, with MAAS Group significantly underperforming the broader market.

During Monday's session, the stock traded between $4.11 and $4.50, with unusually heavy volume, and the share price at one point sat at the day's lowest level.

Holds About 3.2% Stake in Firmus, $410 Million Investment Faces Valuation Uncertainty

MAAS Group has invested a cumulative $410 million in Firmus, giving it a stake of about 3.2% in the company.

The planned IPO was expected to establish a public-market valuation benchmark for Firmus and provide a potential liquidity channel for existing shareholders including MAAS Group.

However, with the listing cancelled, Firmus will not be able to establish a share valuation through public-market trading in the near term, and the market value of MAAS Group's stake faces greater uncertainty.

Investors have therefore begun reassessing the value of the $410 million investment and the possibility of realizing returns through an equity sale in the future.

Although Firmus has decided to pivot to private-market fundraising, the scale, valuation and completion of its subsequent financing will still affect the value of MAAS Group's holding.

Power Infrastructure Unit Holds $1.1 Billion in Orders, Data Center Construction Progress in Focus

Beyond its direct equity investment, MAAS Group also has a sizable commercial relationship with Firmus through its JLE Group power infrastructure business.

JLE Group currently holds approximately $1.1 billion in Firmus orders, mainly involving power infrastructure and modular power supply equipment needed for AI data center construction.

The orders were originally scheduled for execution in the 2026 and 2027 fiscal years, providing power systems and supporting equipment for the AI data centers Firmus planned to build.

MAAS Group said last Friday that the existing contracts between the two parties remain valid, that the company has received $373 million in payments under the arrangements, and that it expects the contracted work to be completed by the end of 2027.

This means Firmus's IPO cancellation has not directly terminated the signed engineering contracts, and the projects are still proceeding under the existing arrangements.

However, as Firmus plans to support its future development through private financing, the market is paying closer attention to whether it can raise sufficient funds to keep its data center construction projects going.

From Equity Valuation to Engineering Orders, Firmus Financing Prospects Emerge as Key Risk

The impact of Firmus's cancelled IPO on MAAS Group involves two aspects. First is the equity investment. The Firmus shares held by MAAS Group have lost the near-term opportunity to establish a valuation and potential exit channel through a public listing, leaving greater uncertainty over the timing of realizing value from the investment.

Second is the commercial orders. Although the existing $1.1 billion contract remains valid, Firmus, as the main investor in the data center construction projects, will directly affect the progress of subsequent works and order execution through its financing capability.

If Firmus cannot raise funds as expected, its data center expansion plans could be affected, further increasing uncertainty over MAAS Group's future project delivery and related revenue recognition.

The recent string of share price declines reflects that MAAS Group is simultaneously exposed to equity investment risk and commercial customer risk tied to Firmus. With Firmus abandoning its US$5 billion IPO and turning to private financing, its subsequent fundraising progress will become a key factor affecting MAAS Group's share price, investment valuation and the execution of the $1.1 billion in engineering orders.