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Nuclear Startup Oklo Raises More Capital, Sparks Concerns
6 Sep
Summary
- Oklo expands recent share issue to $540 million
- Investors concerned about potential share dilution
- Oklo's stock price drops 4% despite S&P 500 gaining 0.8%
On September 6th, 2025, nuclear energy startup Oklo announced that it is expanding its recent secondary common share issue to a total of just under $540 million. This means the company is adding almost $140 million to the offering, which initially raised around $400 million by selling nearly 5.46 million shares.
Investors were not pleased with this news, as Oklo's stock price dropped by nearly 4% the following day, despite the bellwether S&P 500 index closing 0.8% higher. The prospect of share dilution appears to be a concern for investors, even though the additional issue is relatively small compared to Oklo's over $10 billion market capitalization.
Oklo stated that it will use the net proceeds from the expanded share issue "for general corporate purposes, working capital and capital expenditures, and potential future investments." The company is working with several major investment banks, including Bank of America Securities, Goldman Sachs, B. Riley, and TD Securities, to facilitate the share sale.
As a next-generation nuclear energy technology company, Oklo is currently benefiting from a top-down push for nuclear power from the U.S. government. However, the dilution of existing shareholders' stakes seems to be a point of contention for some investors, who may be weighing the potential upside against the risks of further equity offerings.
