TLDR
- X-Energy priced its IPO at $23 per share, above the $16–$19 marketed range, raising $1.02 billion
- The stock opened at $30.11 and surged as high as $31.33, a 36% gain on debut day
- The IPO was oversubscribed by more than 15 times the available supply
- Amazon is both a customer and equity investor; Ark Investment Management indicated it could buy up to $105 million in IPO shares
- X-Energy reported a net loss of ~$390 million on $94 million in revenue last year
X-Energy Inc. made a strong market debut on Friday, with its stock jumping 36% on its first day of trading after a $1 billion-plus IPO that drew far more demand than supply.
X-Energy, Inc. Class A Common Stock, XE
The Rockville, Maryland-based nuclear small modular reactor (SMR) developer priced 44.25 million shares at $23 each — above its marketed range of $16 to $19. The deal size was also increased from an earlier target of 42.86 million shares.
The stock opened at $30.11 on the Nasdaq under the ticker XE. It climbed as high as $31.33 during the session.
The IPO was oversubscribed by more than 15 times. One-third of institutional orders received zero allocation. Management was heavily involved in the share distribution process.
Total proceeds from the offering came in at approximately $1.02 billion, well above earlier estimates of around $700 million.
Based on outstanding shares, the debut gave X-Energy a market valuation of close to $12 billion. Some estimates placed that figure closer to $9 billion.
Ark Investment Management flagged it could purchase up to $105 million worth of IPO shares, according to regulatory filings.
The deal was led by JPMorgan Chase, Morgan Stanley, Jefferies Financial Group, and Moelis & Co.
Technology and Commercial Backing
X-Energy designs SMRs and manufactures advanced nuclear fuel. Its reactors use Triso fuel — tristructural isotropic uranium kernels the size of poppyseeds — built to burn hotter and longer than conventional fuel.
CEO Clay Sell said the company’s goal is to make nuclear energy predictable and repeatable. “We want to make nuclear boring,” he said. “We can build this over and over and over again. That’s the way you get costs down.”
The company holds commercial agreements with Amazon, Dow Inc., and Centrica. Amazon is also an equity investor in the company.
X-Energy expects to receive regulatory licensing this year for its first reactor, planned for construction in Texas for Dow. Operations are targeted for the early 2030s.
Additional projects are planned in Washington state for Amazon.
Financials and Ownership
X-Energy is pre-revenue in any meaningful sense. It posted a net loss of approximately $390 million on $94 million in revenue last year, excluding grants. The prior year saw a net loss of $126 million on $84 million in revenue.
Losses are widening as the company scales up development activity ahead of its first reactor deployment.
Founder and chairman Kamal Ghaffarian controls 61% of the company’s Class B shares. Affiliates of Ares Management Corp. hold an additional 26%.
The stock closed its first day of trading well above its IPO price, with XE up roughly 27% by end of session.
