nuclear-news

Rolls-Royce explores small nuclear reactor unit funding options including IPO (Initial Public Offering) .

An Initial Public Offering (IPO) is the process where a private company sells its shares to the public for the first time, thereby becoming a public company listed on a stock exchange. (The process involves significant costs, ongoing reporting requirements, a loss of some control, and increased exposure to litigation)

The consortium led by the UK engineer is in talks to finalise a
contract with the government later this year. Rolls-Royce has held
exploratory talks with advisers over financing options for its small
nuclear business, including an initial public offering, amid growing
investor excitement about the nascent technology.

The FTSE 100 engineer was
selected to build Britain’s first fleet of small modular reactors in June
as part of a plan by the Labour government to make the UK a world leader in
the technology. The Rolls-Royce-led SMR consortium is in talks to finalise
a contract with the government later this year.

The talks with investment
houses and banks focused on future funding requirements of the business,
according to two people familiar with the situation. “There is a live
debate within the shareholder base,” said one of the people, noting that
a listing at a high valuation would generate significant funding. Other
members of the consortium include CEZ Group, the Czech utility, which holds
a 20 per cent stake as part of a wider partnership with Rolls-Royce, the
Qatar Investment Authority and BNF Resources.

There were “different
views” among shareholders, the person added. Discussions were at an early
stage, with the Rolls-Royce board not in a rush to make any decision, said
the other person. The UK government would be eager to ensure that any
listing occurred in London, which has suffered a marked slowdown in
flotations in recent years, they added. The government has said it will
pledge £2.5bn to small modular reactors during this three-year spending
review period, helping to develop Rolls-Royce’s technology as well as
develop sites for the reactors.

FT 30th Aug 2025,
https://www.ft.com/content/234b4c2e-5e1a-46ba-82fd-472e271a289f

September 5, 2025 - Posted by Christina Macpherson | business and costs, UK