Westinghouse pursues $50 billion-plus valuation in US IPO

Westinghouse Electric is seeking a valuation above $50 billion for a planned US initial public offering, people familiar with the preparations said, as the nuclear technology group moves towards a potential public filing as early as October.

The proposed valuation has not been announced by Westinghouse or its owners and could change as preparations advance. The number of shares to be sold, the price range and the timing of the offering also remain undetermined, according to the company’s formal disclosure of its IPO process.

Westinghouse confidentially submitted a draft registration statement on Form S-1 to the US Securities and Exchange Commission on July 31. Cameco, which owns 49 per cent of the company, said at the time that the flotation would proceed subject to market and other conditions. Brookfield Renewable Partners and institutional partners hold the remaining 51 per cent.

A valuation exceeding $50 billion would mark a sharp increase from the level at which the business changed hands in 2023 and would reflect investors’ renewed interest in nuclear power as electricity demand rises from data centres, artificial intelligence infrastructure and industrial expansion. Cameco’s US-listed shares rose as much as 3.6 per cent on Friday after details of the valuation target emerged, giving the uranium producer a market value above $41 billion.

The potential valuation would also place Westinghouse among the largest market debuts under preparation this year, although the ultimate pricing will depend on investor demand, financial disclosures and market conditions when the offering is launched.

The prospective listing is also being shaped by a strategic partnership between Westinghouse’s owners and the US government. Under terms disclosed in regulatory filings, Washington has committed to support construction of at least $80 billion of new Westinghouse reactor projects in the United States and to help facilitate financing and permitting.

If specified investment conditions are met, the government would receive a participation interest linked to Westinghouse’s value. The agreement provides an IPO-related mechanism if the company reaches an opening valuation of at least $30 billion, potentially allowing that interest to convert into a warrant tied to the listed entity.

Federal support has expanded further this year. The Department of Energy conditionally committed $17.5 billion in loan facilities in June to finance long-lead equipment for as many as 10 Westinghouse AP1000 reactors. The financing remains subject to technical, legal, environmental and financial conditions, as well as definitive agreements and required approvals.

The programme is designed to reduce one of the central barriers to new nuclear construction: the large upfront cost of ordering specialised equipment years before a plant begins generating revenue. Under the structure described by Cameco, project vehicles involving Westinghouse and approved partners would commit equity before drawing on the federal facilities, with loans expected to be repaid when equipment is sold into projects that reach final investment decisions.

Westinghouse’s business model also gives prospective investors exposure to a broad base of recurring nuclear services rather than relying solely on new reactor construction. Brookfield has described the company as one of the world’s largest nuclear services businesses, with much of its earnings generated from refuelling, maintenance and other work for operating plants. Its technology is used across a substantial portion of the global commercial reactor fleet.

The AP1000 remains the centrepiece of Westinghouse’s large-reactor strategy. The company is also developing the smaller AP300 design, while governments and utilities reassess nuclear capacity as a source of round-the-clock electricity with low operational carbon emissions.

The company’s expansion plans still face execution and financing risks. Large nuclear projects have historically been vulnerable to construction delays and cost overruns, and the completion of two AP1000 units at Plant Vogtle in Georgia involved costs far above initial estimates. Westinghouse itself entered bankruptcy protection in 2017 after losses tied to US reactor projects before emerging under new ownership.