Fermi, a Texas REIT developing power and data center infrastructure for AI uses, raised $683 million by offering 32.5 million shares at $21, within the range of $18 to $22. The company had originally filed to offer 25 million shares, before increasing the shares offered on Monday. At pricing, Fermi commands a fully diluted market value of $13.9 billion, and an enterprise value of $13.5 billion, both 5% higher than previously anticipated.
The company is planning to develop a 15 million square foot integrated power plant and data center on the campus of Texas Tech University called Project Matador. Fermi has entered a long-term lease for the site, and is currently in the planning stage. The company plans to complete 1 million square feet of data center capacity and deploy 1 GW of power by the end of 2026. It plans to expand its power capacity to nearly 11 GW by 2038, and include solar, gas, and nuclear power sources. Fermi has yet to generate any revenue.
Fermi plans to list on the Nasdaq under the symbol FRMI. UBS Investment Bank, Evercore ISI, Cantor Fitzgerald, Mizuho Securities, Macquarie Capital, Rothschild, Stifel, Truist Securities, Berenberg, and Panmure acted as joint bookrunners on the deal.
