Holtec Cancels Its IPO Amid Market Shifts; Implications for SMR Stocks
On September 16, Holtec International canceled its planned $900 million initial public offering (IPO), citing a recent market downturn linked to the AI data center sector. The company had intended to use proceeds from the IPO to pivot toward small modular reactor (SMR) development and restart a mothballed nuclear facility in Michigan. The cancellation has raised concerns for SMR stocks like NuScale Power (ticker: SMR) and Oklo Inc. (OKLO), which have both seen significant declines this year, with shares down nearly 50% and 45%, respectively. However, Holtec's CEO indicated the company may attempt another IPO within three to six months if market conditions improve. Meanwhile, government support for SMRs is growing: The European Investment Bank recently approved a €40 million loan to an SMR developer in Finland, while the U.S. House passed legislation that could make dedicated power sources like SMRs more attractive for large energy users such as data centers.
Topics: IPO nuclear energy SMRs stock market sentiment