Geothermal startup Fervo Energy plans $1.3B IPO
Original: Geothermal startup Fervo Energy to raise up to $1.3B in IPO
Why This Matters
Major geothermal IPO reflects growing demand for clean energy to power AI infrastructure
Geothermal startup Fervo Energy announced Monday it seeks to raise up to $1.3 billion in its IPO, targeting a $6.5 billion valuation with shares priced at $21-24. The company will trade on Nasdaq under ticker FRVO.
Fervo Energy hopes to raise up to $1.3 billion in its initial public offering, more than double what it reportedly sought earlier this year when filing confidentially with the SEC. The company would be valued at up to $6.5 billion if shares sell at the top of its $21-24 price range. The IPO follows X-energy's successful $1 billion nuclear power startup IPO, which achieved over $8 billion market cap. Both companies benefit from surging electricity demand from tech companies powering AI data centers, driving natural gas power plant prices up 66% in two years. Fervo's Cape Station power plant will generate electricity at $7,000 per kilowatt capacity, with a goal to reduce costs to $3,000 per kilowatt to compete with natural gas.