Advanced nuclear reactor company X-energy commenced trading on Friday, capitalizing on increased interest in the nuclear sector driven by advancements in artificial intelligence and electrification trends. The stock debuted at $30.11 after upsizing its initial public offering (IPO), which was priced at $23 per share, surpassing the expected range of $16 to $19. The company successfully raised over $1 billion, marking the largest public offering in the nuclear industry to date. By the close of trading, shares had risen by 27% to $29.20.
X-energy’s flagship product, the xe-100 reactor, has a capacity of 80 megawatts and can be combined with additional units to reach up to 960 megawatts. Designed as a high-temperature gas-cooled reactor, the xe-100 can not only produce electricity but also support hard-to-decarbonize industrial processes, such as chemical production. Currently, all operational reactors in the U.S. are light-water reactors.
Although X-energy has not yet broken ground on any facilities, it boasts a robust order pipeline exceeding 11 gigawatts, thanks in part to collaborations with major corporations like Amazon and Dow. Prior to its public offering, the company secured over $1.4 billion in funding, including a substantial $700 million investment late last year, with backing from various high-profile investors and the U.S. Department of Energy.
Unlike its competitors, X-energy has opted for a traditional IPO rather than a special purpose acquisition company (SPAC) route to enter the market. The firm plans to license its technology instead of owning and operating nuclear plants. Its nuclear fuel will be produced at a new fabrication facility in Oak Ridge, Tennessee, with construction expected to begin in 2025.
X-energy and Dow have also submitted a construction permit application to the U.S. Nuclear Regulatory Commission for a project in Seadrift, Texas, with an anticipated review period of 18 months.
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