Houston-based geothermal energy company Fervo Energy has launched its IPO roadshow, offering 55.5 million shares of Class A common stock priced between $21 and $24 each.
The Texas startup has secured $462 million ahead of the listing and is aiming to raise up to $1.3 billion, which could value the company at as much as $6.5 billion.
The shares are expected to trade on the Nasdaq under the ticker “FRVO”, with J.P. Morgan, BofA Securities, RBC Capital Markets, and Barclays leading the offering, alongside a broader syndicate of global banks.
Founded in 2017 by Tim Latimer and Jack Norbeck, Fervo is building enhanced geothermal systems that can deliver 24/7, carbon-free power. By applying horizontal drilling, fibre-optic sensing, and advanced reservoir engineering, it aims to create a repeatable model for utility-scale energy generation.
Unlike wind and solar, geothermal delivers continuous, carbon-free output regardless of weather conditions, which is the core of Fervo’s pitch to data centre operators and utilities seeking firm power.
Its Cape Station project highlights this ambition. The plant is expected to generate electricity at around $7,000 per kilowatt of installed capacity, with a target to reduce that to $3,000.
The timing of the IPO reflects a shift in energy demand. Tech companies are racing to secure reliable power for data centres, pushing electricity demand higher and driving up the cost of alternatives. Prices for new natural gas plants have risen sharply, increasing interest in stable, long-term energy sources. Fervo positions itself as a solution that can provide consistent output without the variability of wind or solar.
That demand surge has already rewarded one clean energy IPO this year: nuclear startup X-energy raised $1 billion in an upsized offering and now trades above an $8 billion market capitalisation. Fervo is targeting the same investor appetite, with the added advantage that geothermal requires no fuel and carries no meltdown risk.
