Fermi Stock Makes A Strong Debut On Nasdaq

Fermi Inc.’s (FRMI) shares made a strong debut on Nasdaq on Wednesday, listing at $25 apiece.

At the time of writing, Fermi’s shares were hovering at $27, or 29% higher compared to the issue price of $21.

The Amarillo, Texas-based data center real estate investment trust (REIT) raised $682.5 million through the IPO, with 32.5 million shares on offer.

Fermi was co-founded by former U.S. Energy Secretary Rick Perry, Toby Neugebauer, and Griffin Perry in January. Rick Perry was the Governor of Texas and served as the Energy Secretary in President Donald Trump’s first term.

Fermi said in its filing that it intends to support the continued growth and development of its business, hire personnel, and increase its financial flexibility. Apart from this, the firm also intends to use the proceeds toward other general corporate purposes, including the procurement, construction, and installation of long lead-time items.

The company also stated that it intends to have up to 11 gigawatts of power available to cater to data centers by 2038. It aims to achieve this through a combination of various power sources, including natural gas, solar energy, and nuclear power.

Since its founding in January, the Texas-based company reported a net loss of $6.4 million through June, according to the SEC filing. This includes $3.6 million in share-based compensation expense and $2.1 million in general and administrative expenses. The firm incurred $0.7 million in non-cash interest expense from paid-in-kind convertible notes.

Fermi’s IPO is the latest in a growing line of companies debuting on the stock market. In September, Delaware-based cybersecurity firm Netskope Inc. (NTSK), Klarna Group Plc. (KLAR), and StubHub Holdings Inc. (STUB) made strong debuts, after being delayed due to an increase in market volatility following President Donald Trump’s tariff policies.

Also See: DraftKings Gets Slew Of Price Target Cuts: Oppenheimer Highlights 'Unfavorable' September, Citi Points To Potential Headwinds Ahead

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