Fervo Energy plans IPO targeting up to $1.3B raise

Fervo Energy said Monday that it aims to raise to $1.3 billion through its upcoming initial public offering.

If shares are priced at the top end of the projected $21 to $24 range, the company could reach a valuation of up to $6.5 billion. That figure is more than double what Fervo was reportedly targeting earlier this year when it confidentially submitted its paperwork to the U.S. Securities and Exchange Commission to begin the IPO process.

The company's shares are expected to trade on the Nasdaq exchange under the ticker symbol FRVO.

Fervo's pricing expectations arrive shortly after X-energy's successful public debut. The nuclear startup raised $1 billion in an expanded IPO and initially targeted a valuation of about $7 billion. Its market capitalisation has since climbed to more than $8 billion.

Both Fervo and X-energy have benefited from rapidly increasing electricity demand driven by major technology companies. These firms are competing to secure reliable energy supplies to power their expanding AI data centre infrastructure. As a result, the cost of building new natural gas power plants has risen by 66% over the past two years.

Fervo stated that its Cape Station facility — its first large-scale geothermal project — is expected to produce electricity at a cost of approximately $7,000 per kilowatt of installed capacity. The company's long-term objective is to reduce that cost to $3,000 per kilowatt, at which point its geothermal energy would become competitive with natural gas.