A dual UK-US listing could become the standard for IPOs of global firms on both sides of the Atlantic, the boss of Fermi has said, after the firm successfully floated on the Nasdaq and the London Stock Exchange.
Toby Neugebauer, chief executive of Texas-based Fermi, said it “makes all the sense in the world” to float in both markets simultaneously because of the closeness of Britain and America.
“I think it makes sense – so far it’s making sense for us,” Neugebauer told City AM.
“If it keeps going like we’re doing I think it could be the standard.”
Fermi’s IPO on the London Stock Exchange was the largest by offering size this year and the biggest by market capitalisation since September 2020, raising hopes for a reversal of the heretofore lacklustre spell for listings in London, in which the capital slipped to 23rd in the global rankings.
Thursday’s float comes after an IPO on the Nasdaq on Wednesday when the share shot up 55 per cent from the opening price of $21 on the first day of trading.
The record-breaking float is thought to be the first concurrent dual listing on Nasdaq and in London since Cambridge semiconductor firm ARM Holdings in 1998.
“The thought process I had behind it is when I think of the United States’ competitive advantage around the world it’s the dollar,” Neugebauer said.
“But the law of the world is the UK law, so when we think about our project being heavily involved in Texas, that is a component to it but our ability to execute is reliant upon a global supply chain…and so what I thought would be great in terms of connecting with our supply chain would be the transparency they would have around our company if it was listed in London as well.”
Fermi, a data centre and energy company, is raising $681m through the listings in order to build 15m sq ft of AI data centre capacity, powered by a mix of natural gas, solar, battery storage as well as four planned nuclear reactors connected with a “HyperGrid.”
The company, which said it was in discussions over securing contracts with a number of major tech firms, has not so far made any money, reporting a loss of $6.4m in its first six months.
“We didn’t issue shares as much as we issued IOUs…so we’re going to be laser focused on executing on the trust that people have placed in us,” Neugebauer said.