Uncovering the Process of Securing Kairos Power's Pre-Initial Public Offering Shares
With the escalating challenge of significant energy requirements brought about by the advancement of artificial intelligence (AI), numerous individuals have advocated for nuclear power as a feasible solution. Veered towards this notion, investors have started scouting for potential investments in nuclear power firms, such as Kairos Power. Founded in 2016, this company aims to boost the development of an innovative nuclear technology, asserting its ambition to "expedite the advancement of an innovative nuclear technology capable of redefining the energy landscape in the United States and beyond."
Deviating from the conventional nuclear power plants that rely on water as a coolant, Kairos Power has created an advanced reactor that employs molten fluoride salt as a coolant. Fueled by the advantage of unwavering structural integrity even at high temperatures and capable of withstanding damage beyond the melting temperatures of conventional metallic fuel, the company's reactor utilizes fully-ceramic fuel.
The burgeoning growth of AI has left data center operators grappling with locating sufficient energy reserves to match up. For instance, business insight firm Gartner forecasts that the unparalleled growth of AI and generative AI will result in an alarming lack of power by 2027, limiting operations at around 40% of AI data centers.
Artificial Intelligence
AI refers to the utilization of machines to simulate human intelligence. Intriguingly, those who have been paying attention to the nuclear energy industry may have held Kairos Power in high regard for years, but its popularity skyrocketed in October 2024, when it forged an alliance with Alphabet's (NYSE:GOOGL) Google to collaborate on a project to unveil a fleet of sophisticated nuclear power projects in the United States amounting to 500 megawatts (MW) by 2035.
While many may perceive the investment potential in Kairos Power, it is essential to investigate a myriad of factors beyond determining the date of its potential election as a publicly traded entity through an initial public offering (IPO).
IPO
An IPO is the first sale of stock by a private company to the public, thus deeming it a publicly traded entity. ## Is it publicly traded?
Is Kairos Power publicly traded?
As of November 2024, Kairos Power remains unidentified as a publicly traded entity, challenging investors on Main Street to source a reliable nuclear energy stock to bolster their portfolios.
Though Kairos Power failed to secure capital through equity issuance, it has managed to fortify its financial standing through other means. In February 2024, Kairos Power inked a Technology Investment Agreement with the U.S. Department of Energy. According to the agreement, Kairos Power will receive up to $303 million upon accomplishing specific milestones related to the design, construction, and commissioning of the Hermes demonstration reactor in Oak Ridge, Tennessee.
IPO
When will Kairos Power IPO?
Although Kairos Power has secured backing from venture capital firm Terra Talent and is well on its way to receive funding from the U.S. Department of Energy, the company has announced no strategic plans to hold an IPO.
Disappointed as investors may be to discover that Kairos Power is missing from the 2024 IPO calendar, they may find solace in other investment possibilities.
How to invest
How to buy Kairos Power stock?
Given that Kairos Power has yet to conduct an IPO, its stock remains inaccessible to most investors. Intriguingly, accredited investors may gain limited exposure to Kairos Power before its IPO through an exclusive platform like ForgeGlobal**.
For those who do not qualify as accredited investors but remain eager to acquire nuclear energy exposure, various opportunities may warrant their consideration.
1. Oklo
In the same realm as Kairos Power, Oklo (OKLO -8.2%) is an innovative nuclear power reactor company that shares its vision for a revolutionary approach to nuclear power. Comprising small modular reactors (SMRs) capable of utilizing recycled fuel, addressing the nuclear waste dilemma, Oklo has piqued the interest of data center operators. The company's third-quarter 2024 financial report revealed that it had augmented its backlog a staggering 200% since it closed its merger with a special purpose acquisition company in July 2023.
By paralleling Kairos Power's development stages, those eager to acquire a growth stock with potential nuclear energy exposure might find similar advantages in Oklo. Investors will likely remain vigilant as the company progresses towards its debut of the first Oklo commercial facility, nicknamed Aurora Powerhouse, at Idaho National Laboratory in 2027.
2. NuScale Power
Branding itself as "the first and only SMR to have its design certified by the U.S. Nuclear Regulatory Commission," NuScale Power (SMR -8.18%) is another promising nuclear power ventures that promises to charm those inclined towards Kairos Power. NuScale Power offers its VOYGR SMR Power Plants in a variety of configurations, catering to the specific energy requirements of its customers.
The company has a diverse range of projects underway across various continents. Notably, a project nearing completion is situated in Romania, where NuScale Power aims to install a VOYGR-6 SMR power plant by the year 2030's end. In North America, the company is collaborating with Standard Power on two nuclear energy facilities in Pennsylvania and Ohio. These projects have a combined capacity to generate 2 gigawatts of nuclear energy for powering data centers.
Despite not raking in significant revenues, the company boasts a robust financial standing. By the end of the third quarter in 2024, NuScale Power had a cash reserve of approximately $112 million, along with $45 million in short-term investments, and no outstanding debt.
3. Cameco
Investors interested in delving deeper into the nuclear energy sector should consider Cameco as an intriguing stock. As one of the world's top uranium producers, Cameco manages several prime assets capable of annually producing over 30 million pounds of uranium concentrates. The future uranium production at Cameco is ensured due to its 485 million pounds of proven and probable mineral reserves.
Apart from uranium production, Cameco sustains operations through its uranium processing services, offering refining, conversion, and fuel manufacturing. Cameco also holds a 49% stake in Westinghouse, which is an original equipment manufacturer of nuclear reactor technology and a supplier of aftermarket products for nuclear power plants. The remaining 51% equity stake belongs to Brookfield Renewable Partners (BEP -1.06%).
Investors seeking a more conservative nuclear energy investment will find Cameco alluring due to its consistent production of abundant free cash flow. The company generated $360 million in free cash flow in 2021, followed by $161 million and $535 million in 2022 and 2023, respectively.
Retail investors who aren't accredited and feel drawn to acquire shares of Oklo, NuScale Power, or Cameco can follow these straightforward steps:
- Log into your brokerage account: Access your investment platform to manage your holdings.
- Search for the stock: Enter the ticker or company name to view the stock's trading page.
- Decide on the number of shares to purchase: Set your investment goals and choose how much of your investment portfolio you'd like to allocate to this particular stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to set your maximum buying price.
- Submit your order: Confirm the details and initiate your buy order.
- Review your purchase: Monitor your holdings to ensure your order was executed accordingly and adjust your investment strategy as required.
Profitability
Is Kairos Power profitable?
Since Kairos Power hasn't yet held an IPO, it's not subject to the same financial disclosure requirements as publicly-traded companies. Consequently, investors have limited understanding of Kairos Power's financial situation. It's reasonable to assume that as a pre-commercial operations company, Kairos Power is not generating revenue and, consequently, is not profitable.
While there's a possibility -- albeit debatable -- that Kairos Power could start generating profits by 2030, it would need to deploy an advanced reactor plant and supply electricity to Google's data center under power purchase agreements.
Should I invest?
Should I invest in Kairos Power?
As of now, retail investors can't invest in Kairos Power due to its non-public status. Should the company opt for an IPO in the future, it will be required to comply with regulatory filings, providing investors with more insight into its financial situation. This, in turn, will enable investors to make informed decisions regarding the suitability of the stock for their investment portfolios.
On the other hand, accredited investors may have the potential to gain exposure to Kairos Power prior to its becoming public. Given the company's current lack of revenue and limited financial transparency, an investment in Kairos Power should only appeal to those unafraid of assuming substantial risk.
ETF options
An exchange-traded fund, or ETF, permits investors to acquire various stocks or bonds simultaneously. ### ETFs with exposure to Kairos Power
Since Kairos Power isn't a publicly-traded company, investors won't find ETFs that provide direct exposure to the stock. However, investors do have ETF options for pursuing nuclear energy investments.
- Global X Uranium ETF (URA -4.25%): If you're looking for a broad exposure to the nuclear energy sector, this ETF with 51 holdings is quite appealing. With significant positions in industry giants like Cameco, making up about 25% of its assets, as well as emerging SMR companies such as Oklo and NuScale Power, this ETF boasts a moderate expense ratio of 0.69%.
- VanEck Uranium and Nuclear ETF (NLR -3.59%): Investors seeking to generate a stronger passive income stream through nuclear energy investments should consider this ETF. Producing a 12-month yield of 3.6%, it provides diverse exposure to the industry, including utilities with substantial nuclear power assets like Constellation Energy and Public Service Enterprise Group, aside from uranium producers like Cameco and Denison Mines.
- Invesco WilderHill Clean Energy ETF (PBW 2.66%): Although this ETF doesn't feature nuclear energy stocks, it has a variety of prominent renewable energy stocks that may appeal to those who value Kairos Power as a clean energy solution. With positions in fuel cell specialists like Bloom Energy, lithium producers like Lithium Americas, and electric air taxi developer Archer Aviation, to name a few, this ETF offers wide-ranging exposure to various sectors and clean energy types, making it a promising clean energy ETF opportunity.
Related investing topics
Investing in Solar Energy Stocks
Explore these openings for clean-energy investment prospects.
Best Wind Energy Stocks
This growing area of the clean energy industry is gaining in significance.
AI Investing: A Beginner's Guide
This beginner's overview of AI investing delves into the aspects of AI to help you determine whether investing in AI is for you.
What is ESG Investing & What are ESG Stocks?
This socially responsible investing approach focuses on good corporate behavior.
The crux of Kairos Power
As AI gains traction and data centers struggle to meet the energy requirements, it's not surprising that growth investors consider nuclear energy stocks like Kairos Power -- particularly after securing a notable agreement with Google.
Since the company hasn't undergone an IPO, unfortunately, it's not an investment option for most investors. However, there are other compelling nuclear energy options to investigate, such as Cameco, Oklo, and NuScale Power, as well as various ETF possibilities.
FAQ
Question: How can I invest in a pre-listed IPO?
Answer: Accredited investors may have the opportunity to purchase shares in pre-IPO companies through platforms like Forge Global.
Question: How can I invest in a company before its IPO?
Answer: Most investors are unlikely to possess equity in pre-IPO companies. Accredited investors may be able to access these companies through trading platforms like Forge Global.
Question: Is Kairos Power publicly traded?
Answer: As of November 2024, Kairos Power was not a publicly traded company.
Question: What is the ticker for Kairos Power?
Answer: Since Kairos Power hasn't held an IPO, the company does not have a stock ticker.
Scott Levine has no position in any of the stocks mentioned. Our Website recommends Brookfield Renewable Partners and NuScale Power. Our Website has a disclosure policy.
Investors looking to diversify their portfolio and capitalize on the potential growth of nuclear energy may consider other companies, such as Oklo or NuScale Power. These companies, like Kairos Power, are working on innovative nuclear technologies to address the energy requirements of data centers.
To invest in these companies, retail investors need to wait until they conduct an IPO, provided they meet the eligibility requirements to participate in the offering. Accredited investors, however, may have access to pre-IPO shares through exclusive platforms like Forge Global.
