Geothermal startup Fervo Energy to raise up to $1.3B in IPO
Geothermal startup Fervo Energy plans to raise up to $1.3 billion in its initial public offering, with a potential valuation of $6.5 billion. The company's IPO comes amid rising demand for clean energy driven by tech companies expanding AI data centers. Fervo aims to reduce its power generation costs to compete with natural gas in the coming years.
- ▪Fervo Energy hopes to raise up to $1.3 billion in its IPO, with shares priced between $21 and $24.
- ▪The company could be valued at up to $6.5 billion if the IPO reaches the top of its price range.
- ▪Fervo's first large-scale project, Cape Station, currently generates power at $7,000 per kilowatt, with a goal to reduce costs to $3,000 per kilowatt.
- ▪The IPO follows X-energy's successful $1 billion public offering, reflecting strong investor interest in clean energy startups.
- ▪Surging electricity demand from AI data centers has increased natural gas power plant prices by 66% over the past two years.
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In Brief Posted: 5:13 PM PDT · May 4, 2026 Image Credits:Fervo Energy Tim De Chant Geothermal startup Fervo Energy to raise up to $1.3B 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 valued at up to $6.5 billion if shares sell at the top of its $21 to $24 price target. That’s more than twice what Fervo had reportedly been seeking earlier this year when it confidentially filed paperwork with the SEC to start the IPO process. The stock will trade on Nasdaq under the ticker FRVO. Fervo’s price target comes on the heels of X-energy’s successful IPO. The nuclear power startup raised $1 billion in an upsized IPO.
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