Holtec International, a company specializing in nuclear plant decommissioning, waste handling, and spent fuel containment, is preparing for an initial public offering (IPO) within the next few months. This IPO is expected to be the largest nuclear-energy offering in years, potentially valuing the company at more than $10 billion. CEO Krishna Singh, who founded the Camden, NJ-based company in 1986, stated Holtec already generates substantial revenue, with annual profits exceeding $500 million. He intends to sell about 20% of the company's equity to investors.
The proceeds from the equity sale will primarily be used to fund Holtec's ambitious expansion into small modular reactors (SMRs). Singh plans to build between 10 and 20 SMRs simultaneously over the next decade. The company is already building equipment for two SMRs in conjunction with Hyundai Engineering & Construction for the Michigan site. Each of these reactors could cost approximately $3 billion to construct, and Holtec is open to operating them or selling them to third parties.
Holtec is also undertaking a first-of-its-kind project in the U.S. by restoring a decommissioned nuclear plant, the Palisades Nuclear Plant in Michigan, which was shut down in 2022. This project has received hundreds of millions of dollars in support from the state of Michigan and the Department of Energy. Holtec's market valuation is anticipated to surpass that of other nuclear developers like Oklo ($8 billion), Nano Nuclear ($1.5 billion), and Nuscale ($10 billion), as Holtec is a more mature company with significant existing revenue. Set to go public between April and June, Holtec aims to raise around $5 billion through an IPO combined with private placements to fund its projects, including proposed SMR units in India. The company is in advanced negotiations with Abu Dhabi-based International Holdings Company for a potential $10 billion fundraising, with the deal expected to be consummated by year-end.
Holtec's SMR-300 design is a pressurized light-water reactor capable of producing at least 300 MW of electric power and can be adjusted for air-cooling in arid environments. The company plans to start construction of its first SMRs at its Camden, New Jersey plant later this year, with ambitions to build fleets in the US, Europe, and Asia. Holtec President Kelly Trice emphasizes the indispensability of nuclear energy for meeting climate targets and stabilizing national grids, especially with surging electricity demand from AI data centers, electric cars, and industrial reshoring. He points to the $1.5 billion federal loan awarded to Holtec in September to help fund the Palisades restart, which is on schedule to reopen in the fourth quarter of 2025 following repairs, safety checks, and regulatory approval, under a total budgeted cost of $2.2 billion.
