Geothermal Firm Fervo Energy Files To Raise Up To $1.3 Billion In Public Offering

Fervo Energy said Monday it plans to sell stock in an initial public offering that could bring in as much as $1.3 billion and would list on the Nasdaq as FRVO.

The company set a proposed share range of $21 to $24, placing a top-end market valuation near $6.5 billion — roughly double the figure it targeted in a confidential SEC filing earlier this year. The offering marks a big step for the start-up as it seeks capital to expand its first commercial project and scale up drilling operations.

Investors have warmed to novel power plays recently. Nuclear developer X-energy completed its own IPO in April, taking in about $1 billion and moving from an initial target valuation of roughly $7 billion to a market value now exceeding $8 billion. Energy strategists say both listings reflect growing investor interest in generators that can provide firm, around-the-clock power to large buyers.

That demand is driven in part by major tech companies racing to secure electricity for new artificial-intelligence data centers. The pressure has pushed the cost of building new natural gas plants up by about two-thirds over the past two years, altering the economics for alternatives such as geothermal and advanced nuclear, analysts note.

Fervo says its Cape Station project currently requires about $7,000 per kilowatt of installed capacity; management has set a goal of lowering that to near $3,000 per kilowatt to reach parity with gas-fired plants. Hitting that mark, experts say, will hinge on cutting drilling expenses and streamlining permitting.

“If they can materially cut bore and completion costs, geothermal could start to compete on price,” said Maya Torres, an energy analyst at Clearview Research. She added that deployment timelines and subsurface risk remain key obstacles that investors will scrutinize as the company goes public.