Fermi Inc. (FRMI) priced its IPO at $21 – above the mid-point of its $18.00-to-$22.00 range – and sold 32.5 million shares – the number of shares in the prospectus – to raise $682.5 million on Tuesday night, Sept. 30, 2025. At pricing, Fermi had a market cap of about $12.5 billion.
Fermi’s stock shot up to $25.00 – up $4.00 for a gain of 19.05 percent from its $21.00 IPO price – in its opening trade on the NASDAQ on Wednesday, Oct. 1, 2025. The stock extended its gain to $26.00 – up $5.00 from its IPO price – at around 12:14 p.m. EDT on volume of about 13.5 million shares.
Fermi is an Amarillo, Texas-based power plant and AI start-up co-founded by Rick Perry, who was the U.S. Secretary of Energy from 2017 to 2019. Perry also served as the governor of Texas for 15 years – the longest stint in the state’s history.
Fermi is a REIT – a real estate investment trust – and it’s a pre-revenue company.
The company has no plans to pay a dividend any time soon.
UBS Investment Bank, Evercore ISI, Cantor and Mizuho were the lead joint book-runners.
Rothschild & Co., Stifel, Truist Securities, Berenberg and Panmure were also on the book-running team, according to the prospectus.
Fermi plans to build a power plant – starting with a natural gas-fired power plant and eventually including a nuclear power plant, along with solar power – to provide a power supply independent of the grid and dedicated to providing electricity for AI (artificial intelligence) data centers, according to the prospectus.
The power plant and AI complex – dubbed “Project Matador” – will be built on 5,236 acres of land owned by the Texas Tech University System and leased from Texas Tech under a 99-year lease, the prospectus said.
The Texas start-up has red ink on its balance sheet. Fermi reported a net loss of $6.4 million on no revenue for the period from the project’s inception in January 2025 through June 30, 2025, according to the prospectus.
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