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(Bloomberg) — Fervo Energy Co., a geothermal energy developer, is looking to raise as much as $1.33 billion in a US initial public offering, as more firms seek to capitalize on the growing power demand for data centers.
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The Houston-based firm plans to market 55.56 million shares for $21 to $24 each, according to a filing with the US Securities and Exchange Commission Monday. At the top of that range, Fervo would have a market value of $6.5 billion based on the outstanding shares listed in its filing.
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Fervo plans uses horizontal drilling and multi-stage hydraulic fracturing to produce geothermal energy at its pilot project and expects to deliver power at its first commercial station by the end of 2026. 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.
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The company plans to use its power for artificial intelligence data centers and has about a $7.2 billion potential backlog of contracted revenue from power purchase agreements across its full portfolio, according to the filing.
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The geothermal firm has backing from Bill Gates’ investment firm Breakthrough Energy Ventures and shale oil producer Devon Energy Corp., the filing shows. Fervo also has power agreements in place with Southern California Edison Co., Alphabet Inc.’s Google and Shell Plc. Alphabet was part of a $462 million investment round in December.
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Fervo had a net loss of $70.5 million on revenue of $138 million in the year ended Dec. 31, 2025, compared with a net loss of $41.1 million on revenue of $199 million a year earlier, according to its filings.
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The company’s founders, Chief Executive Officer Tim Latimer and Chief Technology Officer Jim Norbeck, are expected to control the company through their holdings of supervoting Class B shares following the offering, the filing shows.
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The offering is being led by JPMorgan Chase & Co., Bank of America Corp., Royal Bank of Canada and Barclays Plc. The company expects its shares to trade on Nasdaq under the symbol FRVO.
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