Newcleo makes its debut on the rollercoaster ride that is Wall Street: raises 200 million net

Newcleo has listed on the Nasdaq, bringing the total funds raised since its inception to over $1 billion, and has experienced a trading session characterised by extremely high volatility, partly due to the small free float. After falling by as much as 17.5 per cent, the share price of the fourth-generation nuclear start-up, which has Italian roots, rebounded to reach a high of 6 per cent at $8.63, before closing just above par. Calculating the performance of a new listing that has entered the market via a merger with a listed SPAC is neither straightforward nor entirely indicative of the share’s future performance. In any case, for Newcleo, the only possible comparison is with the prices recorded the day before yesterday by the SPAC itself (NewHold Investment Corp III), at just over €8. The comparison would be different if one were to take into account the $10 per share paid by private investors as part of the IPO, which secured the bulk of the proceeds for Newcleo – namely $216 million. The remainder, 31 million, came from the SPAC’s escrow account, which in fact held 209 million: a sign that most of its shareholders preferred to have their cash returned rather than backing the company led by Stefano Buono (on average, the redemption rate in such transactions is around 50 per cent).

Overall, therefore, the transaction generated gross proceeds of 247 million for Newcleo, rising to 267 million thanks to the additional funds raised as announced by the company. Furthermore – as a statement clarified – as part of the IPO, a “forward purchase agreement” was signed with an investor – specifically Tech Opportunities – which could yield a further $75 million in the coming months, but only if the share price remains steadily above $10.65 per share. In short, a derivative that bears a strong resemblance to a gamble: a practice that, for many start-ups, is almost a daily occurrence given their nature.

Of course, Buono came out on top with the Wall Street listing, although there are those in the market who point out that the net proceeds from the operation – which did, however, provide liquidity for the shares held by long-standing shareholders (including several prominent Italian families) – risk being too meagre to satisfy the thirst for liquidity of a company like Newcleo. Taking into account the costs of the IPO, the company’s coffers will in fact receive around 200 million from the listing, whilst 2025 closed with a deficit of 140 million (following a deficit of -110 million in 2024).

The real challenge for many companies of this kind is securing the necessary funding from investors to reach technological maturity – in Newcleo’s case, lead-cooled reactors using fuel ‘recycled’ from old third-generation plants – which, according to Buono, could be achieved in the early 2030s. Forecasts in this field, as we know, should always be treated with caution, especially when made by those directly involved, but a key milestone this year will be the test of the Precursor electric prototype that the company will carry out in Brasimone.

In the meantime, the hope is that the share price will rise, both to trigger the purchase agreement with Tech Opportunities and, perhaps, to offer opportunities for further gains on the market. Although on Wall Street, the golden age of fourth-generation nuclear power seems to be behind us . The sector’s best-known start-up, Oklo, is now worth a quarter of what it was at its peak a year ago: a sign that, after the grand promises, the market now wants to see results.