By Editor,Mike Sheen
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Boost for the City as AI power provider launches biggest London IPO since 2020
Fermi is co-founded by former US secretary of energy Rick Perry
By MIKE SHEEN, BUSINESS EDITOR
Updated: 10:53 BST, 2 October 2025
The London Stock Exchange will see its biggest initial public offering since 2020 as Texas-based Fermi completes the first US-UK dual listing in 30 years.
Fermi, which was co-founded by former US energy secretary Rick Perry, saw its shares rocket 19 per cent on their Nasdaq debut in New York on Wednesday, giving it a valuation of almost $15billion.
Investor enthusiasm for the float reflects huge demand for artificial intelligence-linked infrastructure.
Fermi is building vertically-integrated infrastructure to support power-hungry data centres built by big tech ‘hyperscalers’ such as Amazon, Google and Microsoft.
Its private power grid will provide on-site energy generation, using nuclear, natural gas, solar and wind, and battery storage, with a target of 11 gigawatts of capacity—enough to power more than eight million homes.
Fermi plans to build one of the world’s largest AI-focused data centre and energy campuses, a 5,236-acre site known as Project Matador, located near Amarillo.
Fermi is co-founded by former US energy secretary Rick Perry
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It is structured as a real estate investment trust, thereby providing investors with exposure to AI infrastructure and energy assets in a tax-efficient manner.
However, Fermi is still its development stage, meaning it is yet to generate any revenues.
Shares were admitted to the main market of the London Stock Exchange on Thursday, giving investors in the UK and around the world access.
Toby Neugebauer, chief executive and co-founder of Fermi, said: ‘The market understands that AI and chips are only as good as the power that supports them.
‘This IPO injects significant capital onto our balance sheet, enabling us to continue locking up long lead-time items and executing at the velocity of the last ten months which will be required to deliver power at scale.
‘We are very pleased with the strong investor demand for our IPO in both London and New York, and remain laser-focused on execution, which will add stakeholder value and help America win the race to powering the future of AI.’
Boost for City amid IPO drought
Fermi’s London listing is a boost for the City, which has slipped out of the world’s top 20 initial public offering (IPO) market, overtaken by Mexico and Singapore, according to Bloomberg research published last week.
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The UK market fell to 23rd in a ranking of global IPO venues as funds raised dropped 69 per cent to £184million, the weakest level in more than three decades.
There have been recent signs of life, however, with a Beauty Tech IPO in the works and food maker Princes Group said to be targeting a float later this month.
Chris Beauchamp, chief market analyst at IG: ‘Fermi’s dual listing and the revival of Shawbrook’s IPO shows that London’s market is not yet doomed to irrelevance.
‘These stories, coming in a week when the UK fell behind Mexico in the global IPO ranking, show that the City can still command the attention of vibrant companies. It sends a message to Westminster that, with a little more love and attention, London can still compete with other major global financial hubs.’
Lawyers at Haynes Boone, which advised Fermi on the dual IPO, said it marked the ‘first simultaneous listing of its kind in more than 30 years’ and ‘showcases the UK’s ability to support innovative, high-growth companies at scale’.
Nick Davis, co-office managing partner of the firm’s London operations, added: ‘The successful execution of a dual listing of this size and complexity is a major milestone – not only for Fermi, but also for the wider market as a signal of what can be achieved in London.
‘Fermi is reshaping the power industry and it is exactly the kind of innovative, high-growth company that London should be attracting. This listing proves London markets can deliver transactions of real scale and provide the capital, expertise and global profile needed to support the most ambitious companies.’
Nick Lawson, chief executive of London-based advisory investment bank Ocean Wall, said: ‘Fermi’s IPO is groundbreaking. It’s the first of its kind: a concurrent dual listing on Nasdaq and the London Stock Exchange.
‘The message is clear: London is wide open for new deals, innovative structures and boundary-breaking transactions. Ocean Wall is proud to have helped pioneer a route that lets UK investors share in America’s innovation story.’
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