Key Takeaways:
- Standard Nuclear priced its IPO at $15 per share, raising $150 million
- The offering was cut by more than half from its original 18.25 million-share plan
- Shares begin trading on the NYSE on July 16 under the ticker STDN
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Standard Nuclear raises $150m in downsized IPO at $15 a share
Standard Nuclear priced its IPO at $15 a share Wednesday, raising $150 million in a downsized offering that valued the TRISO nuclear fuel producer at $2.4 billion, down from an earlier $3.55 billion target.
"The poor performance of recent IPOs, including SpaceX, is negatively affecting demand for US IPOs, in particular for high-risk, loss-making deals such as Standard Nuclear," said Josef Schuster, chief executive officer of IPOX.
The Oak Ridge, Tennessee-based company sold 10 million shares, less than the 18.25 million it had planned to offer at $18 to $21 each. Underwriters have a 30-day option to purchase up to an additional 1.5 million shares. BofA Securities and Goldman Sachs & Co. are leading the offering, with Barclays, UBS Investment Bank, Evercore ISI, RBC Capital Markets, William Blair and Stifel acting as additional bookrunners.
The downsizing reflects cautious investor appetite for early-stage nuclear companies after shares of NuScale Power and Oklo each fell more than 35 percent this year. Standard Nuclear posted a net loss of $7.7 million on revenue of $593,802 in the three months ended March 31, a gap between its strategic ambitions and current financial performance that gave some investors pause.
Standard Nuclear is the only independent US manufacturer of TRISO fuel, a robust form of advanced nuclear fuel designed for next-generation reactors in terrestrial, national security and space applications. The company describes itself as reactor-agnostic, meaning it can supply fuel to any advanced reactor design, including small modular reactors and microreactors.
The IPO's reduced size follows a pattern seen across the US listing market this year. Ambulance giant GMR and small modular reactor developer Deep Fission also downsized their offerings in recent months as investors pushed back on valuations for loss-making companies.
Standard Nuclear generates revenue primarily from fuel development agreements and research and development projects. The company's mission is to scale production of advanced nuclear fuel and radioisotope power systems, helping reduce US reliance on geopolitical adversaries for strategically vital nuclear technologies, according to its prospectus.
The offering is expected to close July 17. Shares of Class A common stock begin trading on the New York Stock Exchange on Thursday under the ticker STDN.
This article is for informational purposes only and does not constitute investment advice.
