London: Rolls-Royce Holdings PLC has denied reports suggesting that its small modular reactor (SMR) division is preparing for an initial public offering (IPO). The clarification came after the Financial Times reported that the company had held preliminary discussions with investment banks and advisors to explore potential fundraising strategies, including a stock market listing.

A spokesperson for Rolls-Royce SMR stated that the unit is not planning for, or in the process of launching, an IPO. The denial comes despite industry speculation that the company may eventually turn to external investors to support the growth of its nuclear program.

The British government has already committed around £2.5 billion ($3.4 billion) to the SMR program over the next four years. This funding includes support for the construction of the first three units, which is expected to reduce the immediate need for an IPO or other major financing.

Rolls-Royce SMR has been advancing its position both in the United Kingdom and abroad. In June, the company won the UK’s SMR contract, paving the way for the development of three nuclear units designed to power millions of homes and create thousands of jobs. Internationally, the company has signed an agreement with Czech utility ČEZ and has been shortlisted in Sweden’s SMR competition, signaling strong global demand for its technology.

Analysts say that although there are no concrete plans for an IPO now, the SMR unit’s future growth prospects and international expansion could make it a candidate for public listing in the longer term. With regulatory processes underway and strong state backing, Rolls-Royce is well-positioned to play a central role in the UK’s transition to cleaner energy while expanding its influence in overseas markets.