Rolls-Royce Denies Report on IPO Plans for Small Nuclear Reactor Unit

Rolls-Royce Holdings (RR.L) on Saturday dismissed a report suggesting it was exploring the possibility of an initial public offering (IPO) for its small nuclear reactor unit.

The Financial Times, citing people familiar with the matter, reported that the company was considering an IPO along with other financing options, with early-stage discussions taking place with investment institutions and banks.

In a statement emailed to Reuters, a spokesperson for Rolls-Royce SMR said: “It is not planning an IPO, nor is it in the process of initiating one.”

In June, Rolls-Royce SMR was selected to build the UK’s first small modular reactors as part of its strategy to accelerate the decarbonization of the power grid by the mid-2030s. The unit, majority-owned by the British engineering firm, plans to construct three reactors.

The UK government has pledged £2.5 billion ($3.4 billion) over the next four years to support the SMR program, which aims to establish one of Europe’s first small-scale nuclear industries.

Countries including the United States, Canada, Romania, and the Czech Republic are also advancing SMR projects, and a successful British program could unlock a significant global market.

($1 = £0.7402)