Fervo Energy stock surged 33% in its Nasdaq $NDAQ debut Wednesday after the Houston-based geothermal company raised $1.89 billion in an upsized initial public offering, pushing its market valuation past $10 billion.
The geothermal startup's market valuation surpassed $10 billion after it raised $1.89 billion, pricing above its marketed range
Bloomberg / Getty Images
Fervo Energy stock surged 33% in its Nasdaq $NDAQ debut Wednesday after the Houston-based geothermal company raised $1.89 billion in an upsized initial public offering, pushing its market valuation past $10 billion.
Shares were priced at $27 apiece — above a marketed range of $25 to $26 — with 70 million sold in total, the company said. The offering was upsized from an originally proposed 55.6 million shares to 70 million shares, with underwriters also receiving an option to purchase up to an additional 10.5 million shares. Fervo stock trades on the Nasdaq under the ticker symbol FRVO.
Using the outstanding share count disclosed in its filings, Bloomberg put Fervo's market value at $7.7 billion at the offering price. Investor appetite was fierce enough that orders came in at a double-digit multiple of available shares, according to Bloomberg reported.
Demand was driven in part by the company's positioning to supply power to data centers and AI facilities. Among Fervo's offtake counterparties are Google $GOOGL, Southern California Edison, and Shell $SHEL, its filings show. Across its full project portfolio, the filings indicate a potential contracted revenue backlog of roughly $7.2 billion. Backers include Bill Gates' investment firm Breakthrough Energy Ventures and shale oil producer Devon Energy $DVN.
"We were asked a few times on the roadshow, 'Why aren't you raising more money?'" Fervo SVP of strategy Sarah Jewett told TechCrunch. "As we saw the demand come in, there were just enough signals pointing towards upsize being not only within the realm of possibility, but the realm of the encouraged."
The IPO proceeds give Fervo additional capital to advance its Cape Station project in Beaver County, Utah, which the company expects to deliver 500 megawatts of power in its first phase. Fervo expects to begin delivering power from the project by the end of 2026, according to its filings. The company also has an earlier-stage project — Corsac Station in Nevada — from which Google will purchase 115 megawatts of electricity, according to TechCrunch.
To extract geothermal energy, Fervo applies horizontal drilling and multi-stage hydraulic fracturing — methods borrowed from the oil and gas sector. According to its filings, Fervo posted a $70.5 million net loss against just $138,000 in revenue during the twelve months through December 31, 2025.
The deal's bookrunning syndicate was led by J.P. Morgan, Bank of America $BAC, RBC Capital Markets, and Barclays, the company said.
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