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4h ago

Fervo Energy Soars 33% in Nasdaq Debut After $1.89 Billion IPO

The surge signals strong investor appetite for steady clean power to feed AI data centers.

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Fervo is developing the Cape Station geothermal power project in Beaver County, Utah.
Jack Norbeck, co-founder and chief technology officer of Fervo Energy Co., center left, and Tim Latimer, co-founder and chief executive officer of Fervo Energy Co., center, ring the opening bell during the company's initial public offering (IPO) at the Nasdaq MarketSite in New York, US, on Wednesday, May 13, 2026. Fervo Energy Co., a geothermal energy developer, raised $1.89 billion in a US initial public offering that priced above the marketed range, after upsizing the deal earlier this week. Photographer: Michael Nagle/Bloomberg
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Overview

  • Shares opened at $36 on Wednesday, about 33% above the $27 offer, pushing the company’s value past $10 billion.
  • Fervo sold 70 million Class A shares at $27 under the ticker FRVO in an offering that was increased from earlier plans, with an option for more shares.
  • The company builds enhanced geothermal plants using horizontal drilling to deliver 24/7 clean power, with a 3 megawatt Nevada pilot online and its Cape Station in Utah due to produce first power later this year.
  • Despite the big raise, Fervo remains early stage with very limited recent revenue and net losses, but it reports a large project pipeline and about $7.2 billion in signed power contracts.
  • The business case hinges on cutting costs from roughly $7,000 per kilowatt toward about $3,000 per kilowatt to compete with gas, a target that will be tested as Cape Station scales.