DL E&C's investment in X-energy, a leading U.S. Small Modular Reactor (SMR) corporations, is bearing fruit. As X-energy, in which DL E&C invested, successfully listed on the U.S. Nasdaq on the 24th, the value of its equity held by the company has increased nearly sixfold in three years.
DL E&C said on the 29th that, as of the 28th local time, the value of its X-energy equity it holds amounts to about 172 billion won. It has jumped nearly sixfold from $20 million (about 30 billion won) three years after the Series C investment in Jan. 2023.
Startups raise funds in stages such as Series A, B and C, and Series C is the stage for investments needed to expand into global markets or related businesses.
Behind the rise in equity value is X-energy's surging share price. As SMRs gain attention as an essential power supply chain in the age of artificial intelligence (AI), the stock has been on a strong rally. Accordingly, DL E&C's equity value is also seen to have risen sharply.
X-energy set its IPO price at $23, above the top end of the indicated range at $19. On the first day of listing on the 24th, the closing price of $29.20 rose 27% from the offer price, and within three trading days it climbed close to 50%, reaching $34.11 as of the 28th. Through this IPO, X-energy raised more than $1 billion (about 1.475 trillion won), the largest in the history of listings by nuclear power corporations by funds raised.
X-energy is a fourth-generation SMR developer supported by the U.S. Department of Energy (DOE). It possesses high-temperature gas-cooled reactor (HTGR) technology that uses high-temperature helium gas for cooling.
DL E&C maintains a strong partnership with X-energy. As a key investor participating from the Series C stage, it has supported growth from the early days.
DL E&C is positioning SMRs as a new growth engine. An SMR is a small reactor with an electric output of 300 MW (megawatts) or less. According to the National Nuclear Laboratory (NNL) in the United Kingdom, the global SMR market is projected to reach about $500 billion (about 740 trillion won) by 2035.
From this year, the results of the collaboration are also beginning to materialize. X-energy is developing an SMR with the goal of beginning commercial operation in the early 2030s, and DL E&C has been tasked with its standard design. Last month, the two signed a related contract, securing fourth-generation SMR technology and EPC (engineering, procurement and construction) capabilities in advance. This is seen to further raise the potential for entry into global markets going forward. The contract is worth $10 million (about 15 billion won). This is the first time a Korean construction company has been paid by an SMR developer to carry out a project.
DL E&C, which holds the most domestic track record in replacing steam generators, a core nuclear power plant facility, is regarded as competitive in both large nuclear plants and SMRs. Steam generator replacement work involves replacing steam generators to improve the power generation efficiency of plants with remaining life, requiring a high degree of expertise and construction experience.
Yoo Jae-ho, head of the plant business division at DL E&C, said, "As X-energy is recognized for its high value in the market, we expect a virtuous cycle that leads to an increase in DL E&C's equity value," adding, "Based on our experience building large nuclear plants, we will expand SMR-related investments and build unrivaled global competitiveness."