(Bloomberg) — Fervo Energy Co., a geothermal energy developer, is seeking to raise as much as $1.82 billion in a US initial public offering, raising its target from $1.33 billion.
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The Houston-based firm plans to market 70 million shares for $25 to $26 each, up from a previous target of 55.56 million shares at $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 $7.4 billion based on the outstanding shares listed in its filing.
With backing from Bill Gates’ investment firm Breakthrough Energy Ventures and shale oil producer Devon Energy Corp., Fervo is among a number of energy producers seeking to capitalize on the growing power demand for data centers. The company has about a $7.2 billion potential backlog of contracted revenue from power purchase agreements across its full portfolio, according to the filing.
Fervo also has power agreements with Southern California Edison Co., Alphabet Inc.’s Google and Shell Plc. Alphabet was part of a $462 million investment round in December.
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. All told, Fervo disclosed 595,900 total leased acres as well as 2.6 gigawatts in advanced development and more than 38 gigawatts in early-stage development.
The company 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.
In its filing, it said it reduced drilling times by approximately 75% from 2022 to 2025, lowering drilling costs by about 70%. Current project costs are about $7,000 per kilowatt, with a long-term target of $3,000 per kilowatt.
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.
Founders Chief Executive Officer Tim Latimer and Chief Technology Officer Jack Norbeck, are expected to control the company through their holdings of supervoting Class B shares following the offering, the filing shows.
