Fervo Energy Prices Upsized IPO At $27, Raises Nearly $1.9 Billion

Fervo Energy priced its initial public offering at $27 per share on Tuesday, May 12, and raised nearly $1.9 billion at a valuation of around $7.7 billion, before starting to trade on the Nasdaq on May 13.

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Axios

TechCrunch said demand was so strong that Fervo and its bankers upsized the offering several times, selling an additional 14.6 million shares while lifting the price range twice, ultimately settling on $27 per share.

Canary Media

The stock popped 33% when it first started trading, pushing its valuation past $10 billion, and TechCrunch reported that Fervo’s market valuation surpassed $10 billion in its public market debut.

Canary Media described the IPO as netting Fervo about $1.9 billion and valuing it at roughly $7.7 billion, and it said Fervo is the first next-generation geothermal firm to go public.

Axios framed the moment as geothermal’s mainstream move, saying Fervo’s upsized IPO brings a broader investor base and needed capital to the geothermal energy sector.

Canary Media linked the debut to investor demand for next-generation geothermal that can deliver carbon-free power around the clock, while noting geothermal has remained a marginal source worldwide due to “serious geological limitations.”

Sarah Jewett, Fervo’s senior vice president of strategy, told Canary Media, “We are seeing demand grow in a way that we have not seen in the electricity sector in quite a long time,” as she described the company coming onto the scene at an “inflection point of demand.”

Renaissance Capital

TechCrunch said the increase was “fueled by demand for AI data centers — and the energy that can power them,” and it reported that Fervo had raised $1.89 billion in an upsized IPO on Wednesday.

Axios said Fervo is the first company to commercialize “enhanced geothermal,” which could evolve geothermal from a niche source into a more mainstream one.

The Motley Fool added that Fervo employs enhanced geothermal systems (EGS) and subsurface monitoring tools, including AI-enhanced fiber optic sensing, as part of its approach to generate stable, carbon-free energy.

Fervo plans to use the IPO proceeds to develop its flagship Cape Station project in Utah, which The Motley Fool said should generate 500 megawatts of power upon reaching full-scale production by 2028.

“Fervo Energy, which is developing next-generation geothermal energy projects, raised $1”

Renaissance Capital

TechCrunch reported that Cape Station is slated to begin operation this year and that the company ultimately plans to generate 500 megawatts when the first phase is complete, which it expects will take around three years.

Canary Media said a total of 500 megawatts are under construction at the site, that Fervo has permits to quadruple that amount, and that the development is on track to start sending electricity to the grid in late 2026.

TechCrunch added that Fervo is permitted to develop 2 gigawatts of geothermal energy at Cape Station and that a third-party engineer reported enough heat on-site for up to 4 gigawatts of capacity.

Renaissance Capital said the Houston, TX-based company will trade on the Nasdaq under the symbol FRVO, and it reported that J.P. Morgan, BofA Securities, RBC Capital Markets, Barclays, Baird, BBVA, Guggenheim Securities, MUFG Securities America, Societe Generale, William Blair, Piper Sandler, Nomura Securities, and WR Securities acted as joint bookrunners on the deal.