Key Points
Oklo is selling up to $1 billion in shares, the second time it has done so this year.
Shareholders who've bought and held Oklo stock since day one have seen their ownership diluted by 37%.
On Sept. 11, Oklo (NYSE: OKLO) launched an at-the-market (ATM) equity program to sell up to $1 billion in shares. While this is a normal way for pre-revenue companies to raise money, Oklo is doing it rather frequently.
The nuclear energy company has sold stock multiple times since going public via a merger with a special purpose acquisition company (SPAC) on May 10, 2024, resulting in significant dilution for early shareholders.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Image source: The Motley Fool.
At the close of Oklo's SPAC merger, it had about 122.1 million outstanding shares. The share count had jumped to 186 million by June 30, 2026, and the company issued another 7.3 million shares under its May equity program. That brings the total number of outstanding shares to roughly 192.3 million, a 58% increase from when it went public.
Shareholders who bought on day one and haven't sold now own about 37% less of Oklo than they originally did. In fairness, the share price is up 311% (as of Oct. 12), so those investors have still made a profit.
However, the company's share price has recently dropped significantly, and it hit a 52-week low on Oct. 8. This is especially problematic because it means Oklo needs to sell more shares than before to raise the same amount of money. The May program sold about 18 million shares to raise $1 billion. Oklo stock trades at about $35 at the time of this writing. At that price, raising $1 billion would take about 29 million shares.
Oklo is a high-risk, high-reward investment. One of the risks at this stage is significant shareholder dilution, which could continue until the company reaches profitability. If you've invested in Oklo or you're planning to invest, it's important to be aware of the risks and take a cautious approach.
Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.