Nuclear technology company Holtec Nuclear Corp. has postponed its planned initial public offering in the U.S. The Camden, New Jersey-based firm had intended to raise as much as $900 million through the offering, with a target valuation of up to $10.2 billion. The decision to delay the IPO comes amid a challenging market for new listings, particularly for larger deals, despite a recent uptick in smaller transactions.
Holtec had planned to offer 50 million shares priced between $15 and $18 apiece. The company is involved in decommissioning shuttered nuclear reactors, including Indian Point in New York, and is also developing small nuclear reactors. Proceeds from the IPO were earmarked for new products, including these small reactors, Green Boiler power batteries, and uranium storage facilities, as well as for new markets such as cybersecurity and military products.
J.P. Morgan, Guggenheim Securities, Goldman Sachs, Citigroup, and BofA Securities were among the joint lead book-running managers for the offering. Holtec had intended to list on the Nasdaq Stock Market and Nasdaq Texas under the symbol "HNUC". Founder and CEO Krishna P. Singh, who will be 80 next year, would have maintained significant control, holding 10 votes per Class B share, equating to approximately 99% of the voting power.
The postponement marks a setback for Holtec, which had expressed confidence in a "surge" in demand for electric power to supply data centers and meet other emerging needs. However, risk factors identified in its preliminary prospectus included potential pullbacks in data center and AI power demand, as well as shifts in regulatory or public support for nuclear energy. The delay aligns with broader market trends where several other companies have also pulled or postponed their IPOs.
