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(Bloomberg) — X-Energy Inc. shares opened 31% above their IPO price, after the nuclear energy firm raised $1.02 billion in an upsized US initial public offering.
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Shares of the Rockville, Maryland-based company backed by Amazon.com Inc. opened at $30.11 each on Friday, versus an IPO price of $23. The listing priced above the marketed $16 to $19 range.
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The trading gives X-Energy a market value of nearly $12 billion based on the outstanding shares listed in its filings. The IPO ended more than 15 times oversubscribed, people familiar with the matter have said.
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“This is a validation of our nuclear technology,” X-Energy Chief Executive Officer Clay Sell said in an interview. “It’s a validation of the role that the market, and investors, believe nuclear energy must play.”
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X-Energy designs small modular nuclear reactors and makes advanced nuclear fuel. Its reactors use so-called Triso pebbles, or tristructural isotropic, poppyseed-sized uranium kernels that burn hotter and longer than conventional fuel.
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“We want to make nuclear boring,” Sell said. “We can build this over and over and over again. That’s the way you get costs down.”
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The offering comes as firms have been racing to bring the first US small modular reactor to market. X-Energy aims to make its first delivery by the early 2030s. The firm plans to use its reactors to power industrial facilities and artificial intelligence data centers and has agreements in place with Dow Inc., Amazon and Centrica Plc.
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Ark Investment Management was interested in buying as much as $105 million worth of shares in the offering at the IPO price, according to the filings.
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Founder and chairman Kamal Ghaffarian controls 61% of the class B shares of the company, while affiliates of Ares Management Corp. have 26%, the filings show.
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X-Energy had a net loss of roughly $390 million on revenue of $94 million, not including grants, last year, compared with a net loss of $126 million on revenue of $84 million a year earlier, the filing shows.
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The offering was led by JPMorgan Chase & Co., Morgan Stanley, Jefferies Financial Group Inc. and Moelis & Co. X-Energy shares trade on the Nasdaq Stock Market under the symbol XE.
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English (US)