Nuclear startup X-energy initiated its investor roadshow on Wednesday in preparation for its IPO, aiming at a price range of $16 to $19 per share, according to U.S. Securities and Exchange Commission filings. At the high end, it could generate about $814 million.
X-energy and similar companies are benefiting from renewed interest in nuclear energy due to increasing electricity demands driven by AI and electrification.
Amazon, a major backer, led a $500 million Series C-1 round and committed to purchasing up to 5 gigawatts of nuclear power from X-energy by 2039.
The IPO offers a possible recovery for X-energy’s investors, with $1.8 billion invested, per PitchBook. X-energy’s previous attempt to go public via a SPAC merger was canceled in 2023 as the SPAC trend declined.
X-energy’s reactor utilizes a high-temperature, gas-cooled design with uranium in ceramic-carbon spheres, cooled by helium gas. This design, based on TRISO fuel, promises more safety but is not yet mainstream.
In its SEC filing, X-energy disclosed a patent dispute with a company that went bankrupt. Ultra Safe Nuclear Corporation, which went bankrupt in 2024, had its assets acquired in bankruptcy to form Standard Nuclear. X-energy claims USNC infringed on its patents and that the issue remains unresolved post-bankruptcy.
Outside China, nuclear reactor development has slowed due to delays and cost issues. New startups aim to overcome traditional design challenges by creating smaller reactors.
Despite none of the small modular reactor startups having built a power plant yet, several aim to meet a July 4 deadline set by the former Trump administration.
While some may miss this deadline, they are expected to achieve criticality, where fission reactions sustain themselves.
Moving from criticality to profitable power plants involves a lengthy process. Mass manufacturing can reduce costs, but benefits typically require about a decade. The number of planned reactors may be insufficient for full mass manufacturing benefits.
X-energy anticipates a 30% cost reduction in reactor production once techniques evolve to what experts call “Nth-of-a-kind.” Investors should monitor the cost of the initial reactor closely, as it could determine the company’s future success.