Fermi America to launch IPO with target valuation of $13.16bn

Fermi America has officially launched its initial public offering (IPO) with the aim of achieving a valuation of up to $13.16 billion for its planned 11GW energy and data center campus located in Amarillo, Texas. The company intends to offer 25,000,000 shares of its common stock as part of the IPO, with an option to grant up to an additional 3,750,000 shares to underwriters. The expected price range for the IPO is between $18 and $22 per share, with plans to list on the Nasdaq Global Select Market and the London Stock Exchange under the ticker symbol “FRMI.”

Reports of the IPO emerged earlier in the month when Fermi, co-founded by former US Energy Secretary Rick Perry, filed a Registration Statement on Form S-11 with the U.S. Securities and Exchange Commission in connection with the proposed offering. The company aims to utilize the funds raised from the IPO, along with its current assets, to bolster business growth, expand its workforce, and enhance financial flexibility to support the data center project.

Leading book-running managers for the IPO include UBS Investment Bank, Evercore ISI, Cantor, and Mizuho, with additional bookrunners such as Macquarie Capital, Rothschild & Co., Stifel, Truist Securities, Berenberg, and Panmure Liberum. For advisory support on the company’s intended listing on the London Stock Exchange, Ocean Wall is providing assistance.

Fermi is currently in the process of developing “Project Matador,” an ambitious 11GW hyperscale data center complex that is projected to cover 18 million square feet. The company is working in collaboration with the Texas Tech University System, planning to construct the campus on land at Texas Tech University. The new campus will be powered by a mix of on-site energy sources, including natural gas, solar, wind, and nuclear energy. To secure a reliable power supply, Fermi has already entered into multiple agreements, including the acquisition of over 600MW of natural gas generation capacity through two transactions in July.

Although natural gas is expected to be the primary power source in the near to medium term, Fermi anticipates nuclear energy to take precedence in the long run. The company has expressed intentions to incorporate four Westinghouse AP1000 reactors at the site, each with an output capacity of roughly 1,100–1,117MWe. Collaborating with Westinghouse, Fermi aims to finalize a Combined Operating License Application to expedite the approval process for the reactors. Concerns regarding the delivery of the reactors have been raised, particularly given the recent US insolvency of several similar projects.