Nuclear startup X-energy has launched its investor roadshow, targeting an initial public offering (IPO) price between $16 and $19 per share. According to filings with the U.S. Securities and Exchange Commission, if the shares are priced at the higher end, the company could raise approximately $814.3 million.
The growing demand for electricity, particularly driven by AI data centers and widespread electrification, has sparked renewed interest in fission power, benefiting X-energy and similar companies.
Amazon, a significant supporter of X-energy, led a $500 million Series C-1 funding round and has committed to purchasing up to 5 gigawatts of nuclear power from the startup by 2039.
This IPO is particularly encouraging for X-energy's investors, who have contributed around $1.8 billion to the company, as reported by PitchBook. The startup had previously sought to go public through a reverse merger with a special purpose acquisition company, but the deal was terminated in 2023 as interest in SPACs waned.
X-energy specializes in high-temperature, gas-cooled reactors, utilizing a unique fuel design known as TRISO, where uranium is encased in ceramic and carbon spheres, cooled by helium gas. This innovative approach is anticipated to enhance safety compared to earlier fuel designs, despite its limited adoption to date.
In its SEC filing, X-energy disclosed an ongoing patent dispute with Ultra Safe Nuclear Corporation (USNC), which filed for bankruptcy in 2024. X-energy claims that USNC infringed on its fuel fabrication patents, and the matter remains unresolved following the bankruptcy proceedings.
Globally, the development of new nuclear reactors has faced significant challenges, with many projects experiencing delays and budget overruns. However, a wave of startups aims to address these issues by creating smaller reactors that could potentially streamline the development process.
While none of the small modular reactor companies have yet constructed a power plant, many are working toward achieving criticality--the point at which fission reactions become self-sustaining. Although some may miss the upcoming deadlines set by previous administrations, the potential for success remains.
The journey from achieving criticality to establishing profitable power plants is likely to be lengthy. While mass manufacturing could reduce costs, it typically takes about a decade for these investments to yield returns. Additionally, the number of reactors these startups plan to build may not be sufficient to fully leverage the advantages of mass production.
X-energy anticipates that as its reactor production methods mature, costs could decrease by 30% compared to initial prototypes. Investors will need to monitor the expenses associated with the first reactor closely, as this could significantly influence the company's future prospects.