Nuclear reactor developer X‑Energy targets $7.5 billion valuation in US IPO

By Pragyan Kalita

April 15 (Reuters) - Amazon-backed X-Energy ‌is targeting ​a valuation ​of up to $7.51 billion in its initial public offering in the United States, the nuclear reactor developer said on Wednesday.

The Maryland-based ‌company is seeking up to $814.3 million by offering roughly 42.9 ⁠million shares priced between $16 and $19 apiece.

The IPO roadshow launch coincides with the S&P 500 reaching record ‌closing highs, driven by strong ‌corporate earnings and optimism in U.S.-Iran negotiations.

"We've seen the IPO window slam shut before, so when companies see an opportunity, they take it," said ​Matt Kennedy, senior ‍strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.

A choppy market in February and March, weighed down by AI disruption ⁠worries and geopolitical risks in the Middle East, slowed new listings.

"This is not yet a broad reopening, ​which is obvious from the glaring lack of tech issues on the calendar. Still, it's a step in that direction," ​Kennedy added.

Nuclear energy is experiencing a resurgence, driven ‌by surging electricity demand from hyperscalers that operate massive cloud-computing infrastructure to manage rising AI processing.

Morgan Stanley reports global ⁠electricity demand is projected to rise more than 1 trillion kWh annually through 2030, with data centers anticipated to contribute nearly 20% of this growth.

Founded in 2009, X-Energy designs ⁠nuclear reactor technology known as small modular reactors (SMR) and manufactures nuclear fuels.

SMRs are more ​compact and cost-effective compared to full-sized reactors that often take decades to build.

Cathie Wood's ARK Investment Management and its affiliated entities have indicated an interest in purchasing up to $105 million ‌of shares from X-Energy's offering.

X‑Energy had previously planned to go public via an Ares Management-backed blank-check firm in 2023, ‌but later decided not to proceed, citing tough market conditions.

J.P. Morgan, Morgan Stanley, Jefferies, ⁠and Moelis are acting as ‌the lead joint book-running ​managers. X‑Energy will list on the Nasdaq under the symbol "XE".

(Reporting by Pragyan Kalita and Arasu Kannagi Basil in Bengaluru; Editing by ‌Vijay Kishore)

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