Bill Gates-backed geothermal power developer Fervo Energy is now targeting a $7.37 billion valuation in its upcoming IPO following a surge of interest from investors.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Offering More Shares
The Houston-based business is now seeking to raise up to $1.82 billion in its IPO by offering 70 million shares priced between $25 and $26 each. It was earlier seeking a valuation of $6.5 billion, offering 55.6 million shares priced between $21 and $24 apiece.
J.P. Morgan (JPM), BofA Securities (BAC), RBC Capital Markets, and Barclays are the joint lead bookrunning managers. Fervo Energy will list on the Nasdaq under the symbol “FRVO.”
Geothermal is a well-established renewable energy technology that uses hot water to produce electricity. Fervo says it uses AI precision directional drilling technology to drill horizontally in geothermal reservoirs. This enables it to drill multiple wells from a single location, “dramatically lowering our surface footprint and reducing drilling risks.”
Fervo believes it can offer a sustainable way of meeting increased demand for power. The surging use of AI and the boom in data centers has pushed up electricity usage, putting pressure on grid infrastructure.
Substantial Revenue Backlog
It has roughly $7.2 billion in potential revenue backlog from power purchase agreements, with 500 megawatts currently under construction and 658 megawatts of contracted offtake. Its partners include Southern California Edison and oil major Shell (SHEL).
Bill Gates’ investment firm Breakthrough Energy Ventures and shale oil producer Devon Energy (DVN) are also backers. In addition, Alphabet (GOOGL), which plans to power its Nevada data centers with Fervo supply, was part of a $462 million investment round in December.
The company’s Cape Station project in Beaver County, Utah, would be one of the world’s largest geothermal projects with 500 megawatts of power. Overall, Fervo disclosed 595,900 total leased acres as well as 2.6 gigawatts in advanced development and more than 38 gigawatts in early-stage development in its filing.
Fervo had a net loss of $70.5 million on revenue of $138 million in the year ended December 31, 2025, compared with a net loss of $41.1 million on revenue of $199 million a year earlier, according to its filings.
What Other IPOs are on the Way?
Let’s look at what other IPOs are on the way with the TipRanks IPO calendar.
