Rolls-Royce Weighs Funding Options Including IPO for UK Small Nuclear Unit

Rolls-Royce Holdings is exploring funding options for its small nuclear reactor unit, including the possibility of an initial public offering (IPO), according to multiple reports citing sources familiar with the situation. The discussions are in early stages, involving talks with investment houses and banks, with the company's board not rushing to a decision. The small modular reactor (SMR) unit, which aims to build Britain's first SMRs, was selected by the UK government as part of a plan to decarbonize the power network by the mid-2030s, supported by a $3.4 billion government pledge over four years. However, Rolls-Royce SMR has officially denied that it is planning or in the process of launching an IPO. The SMR project has attracted interest globally, with countries like the United States, Canada, Romania, and the Czech Republic pursuing similar initiatives, potentially opening a significant international market. Analysts caution that the company’s stock faces substantial downside risks, with some price targets indicating a potential drop of over 70% in value.