Geothermal startup Fervo Energy said Monday it hopes to raise up to $1.3 billion in an initial public offering.
If the stock trades above its $21-$24 price target, the company will be valued at $6.5 billion. That’s twice as much as Fervo is reported to be looking for When it filed confidential documents with the SEC earlier this year to begin the IPO process.
Shares will trade on the Nasdaq under the ticker FRVO.
Fervo’s price target follows X-energy’s successful IPO. Launching nuclear power collected 1 billion dollars in a raised IPO. When the company set its price target for the IPO, it sought a valuation of about $7 billion. Today, X-energy’s market capitalization is over $8 billion.
Both Fervo and X-energy have been boosted by growing demand for electricity from tech companies competing to secure supplies to power AI data centers. The conflict has driven up the price of new natural gas power plants by 66% in the past two years.
Fervo says the Cape Station power plant — its first large-scale project — will generate electricity worth $7,000 per kilowatt of installed capacity. The company’s goal is to bring it down to $3,000 per kilowatt, at which point it will begin to compete with natural gas.
