Fermi Launches IPO, Aims To Raise $550 Million

Fermi LLC launched its initial public offering (IPO) on Wednesday, aiming to raise $550 million at a valuation of $13 billion.

Co-founded by former U.S. Energy Secretary Rick Perry, Fermi is offering 25 million shares priced between $18 and $22, according to the company’s filing with the U.S. Securities and Exchange Commission (SEC).

Fermi, which is a real estate investment trust (REIT), will be renamed Fermi Inc. from its existing name, Fermi LLC, and the stock will list on the Nasdaq Global Select Market and the London Stock Exchange under the ticker “FRMI,” the company said in its filing. It was co-founded by 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.

Also See: Ed Yardeni Draws Parallels To Jerome Powell’s Equity Remarks With Alan Greenspan’s ‘Irrelational Exuberance’ Comments: Report

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