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

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

The company would be worth up to $6.5 billion if shares sell at the top of the $21 to $24 target price. That’s more than double what Fervo was reportedly seeking earlier this year when it secretly filed paperwork with the Securities and Exchange Commission to begin the IPO process.

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

Fervo’s price target comes on the heels of X-energy’s successful IPO. The nuclear energy startup raised $1 billion in a massive initial public offering. When the company set its IPO price target, it sought a valuation of about $7 billion. Today, X-energy’s market cap is more than $8 billion.

Both Fervo and X-energy have been boosted by growing demand for electricity from technology companies, which have been racing to secure supplies to fuel their AI data centers. The stampede has caused prices for new natural gas-fired power plants to rise by 66% in the past two years.

Vervo says the Cape Power Plant – its first large-scale project – will generate electricity at $7,000 per kilowatt of installed capacity. The company’s goal is to get that down to $3,000 per kilowatt of capacity, at which point it will start cost-competing with natural gas.