Rick Perry’s REIT Fermi Surges 55% After $683 Million IPO

Company Overview - Fermi Inc. shares surged 55% in their debut, closing at $32.53 compared to an IPO price of $21, after raising $682.5 million in its US listing [1][2] - The company, co-founded by former US Secretary of Energy Rick Perry, has a market value of approximately $19.3 billion based on outstanding shares [2][6] - Fermi has not generated any revenue since its formation in January [3] Industry Context - The rise of artificial intelligence has rekindled interest in energy-producing companies, with investors favoring firms like NRG Energy Inc. and Vistra Corp. as proxies for AI technology [3] - There are limited investment opportunities in the AI energy demand sector, prompting investors to seek new avenues as traditional power producers have already seen significant stock price increases [4] Project Details - Fermi's "Project Matador" is an advanced energy and data center campus covering over 5,000 acres leased from Texas Tech University, also referred to as the President Donald J. Trump Advanced Energy and Intelligence Campus [4] - The company aims to attract data center and hyperscaler tenants, with plans to have one gigawatt of power operational by the end of next year and up to 11 gigawatts by 2038, utilizing a mix of natural gas, solar energy, and nuclear power [5] Financial Performance - Fermi reported a net loss of $6.37 million from its inception through the end of June [6] - The public listing has resulted in significant financial gains for the founding team, with Perry's shares valued at approximately $540 million and his son Griffin controlling a $2.4 billion stake [6]