Nuclear energy service company Holtec (HNUC.US) joins the industry IPO trend and seizes the opportunity in the AI data center power shortage.

Holtec Nuclear Corp. (HNUC.US) has submitted an initial public offering (IPO) application to the U.S. Securities and Exchange Commission, becoming the latest company in the nuclear energy sector to seek listing on the growing demand for electricity from data centers. According to the documents submitted to the Securities and Exchange Commission on Friday, the nuclear supplier based in Camden, New Jersey, reported revenue of $165.3 million and net profit of $17.8 million for the three months ending March 31, compared to revenue of $177.7 million and net profit of $25.4 million in the same period last year. Founded in 1986, Holtec's main business is manufacturing giant steel and concrete containers for storing high-level nuclear waste, and it is also a major company responsible for decommissioning and closing reactors in the United States, including the Indian Point nuclear power plant north of New York City. However, in recent years, with the increasing demand for nuclear energy, the company is actively adjusting its strategic focus. In 2022, Holtec acquired the Palisades nuclear power plant in Michigan, which was originally planned for decommissioning. However, shortly after the acquisition, there were calls for the plant to be restarted, signaling the growing demand for zero-carbon electricity from reactors. Now, the company is close to putting the nuclear power plant back into operation. Meanwhile, Holtec is also developing reactor technology independently and plans to deploy the first batch of units at the same site. In December 2023, Holtec's small modular reactor project received $4 billion in funding from the U.S. Energy Corp. The company's goal is to have these reactors operational in the early 2030s. The documents show that the company's shares are held by two trust funds controlled by the founder and CEO, Krishna Singh. This IPO comes at a time when the nuclear energy sector is receiving widespread attention from artificial intelligence (AI) data center operators. X-Energy (XE.US) went public in April this year, with the stock price rising on the first day, but subsequently falling 31% from the offering price. Due to the lack of commercialization of small modular reactors in the United States, some nuclear stocks have experienced a correction, and the market is waiting for technological advancements. Holtec's offering is led by JPMorgan Chase, Guggenheim Securities, Goldman Sachs Group, Inc., Citigroup, and Bank of America Corp. The company expects its stock to be listed on the Nasdaq Stock Exchange under the ticker symbol "HNUC".