After earlier reports from media outlets about Holtec suspending its initial public offering (IPO), the company officially said Thursday that it will postpone the launching of its IPO due to recent market conditions.
In its company’s press release, Holtec said:
“The decision to postpone the offering has been caused by the unusual confluence of developments that has impaired investor confidence in the market for new public offerings,” according to the release. “The adverse market sentiment has affected the equity markets in general and the nuclear sector in particular in the past two weeks.”
Just last week, Holtec had plans to offer 50 million shares at prices that range between $15 and $18 per share and aim to raise $900 before expenses, which would have put it on track for a $10.2 billion valuation.
Holtec attributed part of its postponement to uncertainties in data center developments. Much of the recent domestic push for nuclear energy has been tied to artificial intelligence (AI). Late last week, several major AI companies called for the country to collectively slow down on the development of AI technology.
Also, public approval for AI data center projects is at a new low in the country, with a national poll conducted by the University of Massachusetts Amherst and publicly released Monday finding that only 11% of Americans would support construction of an AI data center in their community.
In May, a Gallup poll found that only 7% of Americans would strongly support construction of an AI data center in their area. An additional 20% would somewhat favor the project, leaving the other 73% of people polled somewhat disagreeing or strongly disagreeing with the AI project developments in their areas.
The decommissioning company also attributed fluctuating market conditions to military conflicts, international trade tension and “pre-existing headwinds”, such as rising energy costs. In the meantime, Holtec said it will prioritize near-term goals, including the restart of the Palisades nuclear plant in Michigan and building out its SMR-300s, while waiting for the more favorable market conditions to roll out its IPO.
Holtec, based in Jupiter, Fla.-based, has expanded its services in the nuclear industry over the past several years as it was initially a prominent company in the decommissioning sector. It currently leads decommissioning projects at multiple nuclear power plants, including Oyster Creek in New Jersey, Indian Point in New York and Pilgrim in Massachusetts.