Fervo Energy’s initial public offering day has arrived. It comes after months of momentum — the company’s value has more than doubled since January — and ushers in a big test for the still-nascent enhanced geothermal market: Can Fervo and its technology survive the scrutiny and disclosure demands of public company status?
Fervo raised $1.89 billion in the lead-up to its Nasdaq listing this morning, making it the largest climate tech IPO so far this year. It’s also the first geothermal company to go public in more than a decade.
The company marketed 70 million shares at $27 each, valuing Fervo at more than $7.7 billion based on the outstanding shares listed in its latest SEC filing this week. And in just half a day, shares rose 33%, putting the company’s valuation at over $10 billion. Strong investor interest led Fervo to boost its valuation twice this year in the lead-up to the IPO; earlier this month, it targeted $6.5 billion.
Geothermal has been a rare zero-emissions energy source with bipartisan support, including from Energy Secretary Chris Wright, the fossil fuel industry, and data center developers seeking clean, firm power sources. Sarah Jewett, Fervo’s senior vice president of strategy, emphasized the company’s enthusiasm for tackling climate change.
