Geothermal startup Fervo Energy raises up to $1.3B in IPO

Geothermal startup Fervo Energy said Monday it hopes to raise up to $1.3 billion in an initial public offering.

The company will be worth up to $6.5 billion if the shares are bought above their current price of $21 to $24. That’s more than double what Fervo had. they say they have been looking for it earlier this year when they privately filed papers with the SEC to begin the IPO process.

The stock will trade on the Nasdaq under the ticker FRVO.

Fervo’s price comes after X-energy’s successful IPO. The introduction of nuclear power earned $1 billion in the additional IPO. When the company set its IPO price, it wanted to be valued at around $7 billion. Today, X-energy’s market capitalization is over $8 billion.

Both Fervo and X-energy have been boosted by a surge in electricity from tech companies, who have been scrambling to find products to power their AI data centers. The dispute has pushed up the price of new gas-fired power plants by 66% over the past two years.

Fervo says the Cape Station power house – its first major project – will generate electricity at $7,000 per kilowatt of installed capacity. The company’s goal is to reduce it to $3,000 per kilowatt of energy, when it will become competitive with natural gas.