X-energy’s stock price jumped 27% on its first day of trading on the Nasdaq on Wednesday, defying skepticism about nuclear energy startups. The company priced its initial public offering at $16 per share last week but increased the offering size to 15 million shares from the originally planned 12 million. Trading opened at $18 and closed at $20.32.
The surge reflects investor interest in advanced nuclear technology despite long development timelines. X-energy focuses on high-temperature gas reactors designed for industrial heat and electricity. The company aims to deploy its first commercial reactor by 2030, targeting sectors like steel and chemical production.
The IPO raised $240 million, giving X-energy a market cap of about $2.2 billion at the closing price. Analysts note the strong demand for energy alternatives but caution about regulatory and construction risks. The company has contracts with the U.S. Department of Energy for fuel development.
X-energy competes with other nuclear innovators like NuScale Power and TerraPower. Its reactors use TRISO fuel, a next-generation technology that improves safety and efficiency. The company plans to use proceeds from the IPO for reactor testing and regulatory approvals.
The stock’s performance contrasts with past nuclear IPOs, which often struggled. X-energy’s success may signal growing investor confidence in nuclear power as a carbon-free energy source.
Source: techcrunch.com