Fervo Energy, which is developing next-generation geothermal energy projects, raised $1.9 billion by offering 70 million shares at $27, above the revised $25 to $26 range. The company originally filed to offer 55.6 million shares at $21 to $24, before it increased the share offering and range on 05/11. Cornerstone investors Atlas Point Energy Infrastructure Fund, Norges Bank, Wellington Management, and Capital Group had intended to purchase $350 million worth of shares in the offering (19% of the deal). At pricing, the company commands a fully diluted market value of $8.8 billion.
Fervo Energy is a geothermal energy company developing enhanced geothermal systems (EGS) to generate electricity. It applies techniques such as horizontal drilling and hydraulic fracturing to access and circulate heat from underground rock formations, enabling geothermal power production in locations that lack natural permeability. The company also uses advanced monitoring technologies, including fiber optic sensing, to track subsurface conditions and optimize energy extraction. Its approach aims to expand the scalability and geographic reach of geothermal energy as a source of firm, always-available power.
The Houston, TX-based company will trade on the Nasdaq under the symbol FRVO. J.P. Morgan, BofA Securities, RBC Capital Markets, Barclays, Baird, BBVA, Guggenheim Securities, MUFG Securities America, Societe Generale, William Blair, Piper Sandler, Nomura Securities, and WR Securities acted as joint bookrunners on the deal.
