Cloud data specialist Wandisco becomes latest British firm to plot additional listing in the US
- AIM-listed firm has headquarters in both Sheffield and California
- The announcement follows similar moves from Arm and CRH last week
Cloud data specialist Wandisco has become the latest British company to announce plans to list its shares in the US, in a bid to attract a higher valuation.
The company, which has headquarters both in Sheffield and San Ramon, California, and is listed on London’s junior market, has confirmed it is in ‘the early stages of proactively’ exploring an additional US listing.
It comes just days after Cambridge-based chip designer Arm announced it would pick Wall Street over the City for its £50billion public offering and buildings materials firm CRH laid out plans to move its shares to the US.
‘Big data’ firm Wandisco is one of many British firms looking to the US for listing its shares
Last month, FTSE 100 betting giant Flutter Entertainment launched a consultation with shareholders about a potential additional US listing.
Wandisco operates across the world, but its biggest market by revenue is North America.
‘As a dual UK and US headquartered technology company, WANdisco has long-stated its intention to consider an additional listing of its ordinary shares in the United States,’ the company told investors today.
‘The company can confirm that it is in the early stages of proactively exploring this option.
‘The company also confirms that it remains committed to London’s Alternative Investment Market and to maintaining its current UK AIM listing.’
The news comes after a report from Sky News over the weekend that indicated Wandisco has hired bankers from Evercore Partners to prepare for a New York listing.
The dual listing was first suggested as a possibility by Chief executive David Richards in 2017.
Wandisco shares were 0.5 per cent higher at £13.24 in morning trading on Monday. They have risen by more than 400 per cent over the last year.
Joshua Raymond, director at online investment platform XTB.com, said Wandisco’s move was motivated by the search for a higher valuation.
‘Stock market listings are about price stability and valuations. If firms believe they can get higher valuations in an equally reputable markets, it’s no surprise they will make that strategic move,’ he noted.
However, Raymond did concede that London had lost some attractiveness in recent years.
‘It’s clear the attractiveness of the UK market has lost some appeal in recent years after the budget car crash of last year, Brexit red tape and instability at the heart of government,’ he added.
‘London has long been thought of as a major financial centre and I don’t think the loss of these major firms to the US for their stock market listing changes that.’
Victoria Scholar, head of investments at interactive investor, said one of the biggest hurdles for the UK market remained its struggle to attract tech companies.
‘While the FTSE 100 enjoyed relative resilience last year in part thanks to its shortage of tech stocks, this has long been a criticism and meant that the UK large-cap index missed out on the gains enjoyed stateside from the tech boom prior to 2022,’ she said.
‘There have been some high-profile tech disasters in London including Deliveroo’s calamitous IPO and THG’s share price slide, adding to the sense of caution towards the UK among tech businesses deciding where to list.’