X-Energy, a developer of nuclear reactors, aims for a valuation of $7.5 billion in its US IPO

X-Energy, backed by Amazon, said Wednesday that it aimed to achieve a valuation?of up to $7.51billion in its initial IPO?in the?United?States.

The Maryland-based nuclear reactor developer is looking to raise up to $814,3 million by selling approximately 42.9 million shares at a price between $16 and $29.

The nuclear energy industry is experiencing a revival, fueled by the surge in electricity demand of hyperscalers who operate massive cloud computing infrastructure to handle rising AI processing.

Morgan Stanley says that global electricity demand is expected to increase by more than one trillion kWh per year through 2030. Data centers are expected to contribute to nearly 20% of the growth.

Founded in 2009 by X-Energy, the company designs small?modular nuclear reactors and manufactures nuclear fuels.

SMRs can be built more quickly and at a lower cost than full-sized reactors, which often take years to construct.

The company is building a reactor called Xe-100 that uses helium instead of water as a coolant.

The U.S. Nuclear Power regulator granted a license in 'February to Triso-X a subsidiary of X-Energy?to manufacture a fuel for?commercial reactors?at a plant?in?Tennessee.

X-Energy planned to become public in 2023 via an Ares-backed SPAC but?later chose not to do so citing 'tough market conditions.

J.P.Morgan and Morgan Stanley are among the underwriters of IPO.

It will list Class A Common Stock on Nasdaq with the symbol "XE". (Reporting by Pragyan Kalita in Bengaluru; Editing by Vijay Kishore)

(source: Reuters)