Holtec Nuclear targets $10.2 billion valuation in US IPO as fall window kicks off

Nuclear technology company Holtec said on Tuesday it is targeting a valuation of up to $10.2 billion in its U.S. initial public offering, as Wall Street enters the post-Labor Day dealmaking season, Reuters reported.

The company, which is headquartered in Camden, New Jersey, intends to raise a maximum of $900 million from the sale of 50 million shares, with each share priced between $15 and $18.

Fall is traditionally one of the busiest windows for new deals, as the market moves past the summer lull.

Lukas Muehlbauer, an associate at IPOX Research, commented that the first companies to go public will also establish the benchmark, as successful listings might induce more offerings, whereas mispriced deals or poor aftermarket performance could restrict the window.

Muehlbauer further noted that economic fundamentals and market dynamics, together with the Federal Reserve’s meeting this month, will determine the trajectory of the IPO market, with minimal impact expected from this year’s midterm elections.

Holtec’s offering adds to a growing list of nuclear-sector IPOs this year, as industry issuers increasingly choose traditional listings over SPAC transactions.

X-energy and Standard Nuclear have already gone public through conventional IPOs this year, and Westinghouse has also filed confidentially for a New York listing.

Rising demand for nuclear power stems from data center expansion requiring more electricity, which is stressing U.S. power grids and boosting interest in reactors.

Holtec was founded in 1986 by Krishna Singh and is active in heat transfer, reactor components, spent fuel storage, and nuclear plant decommissioning.

The firm is working on small modular reactors (SMRs), with the initial two units expected to be deployed at its Palisades site.

Holtec is also endeavoring to restart the decommissioned 800-megawatt Palisades plant, which would become the first U.S. commercial reactor to restart after ceasing operations.

The joint lead book-running managers are J.P. Morgan, Guggenheim Securities, Goldman Sachs, Citigroup, and BofA Securities. Holtec plans to list on the Nasdaq and Nasdaq Texas under the symbol "HNUC".