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Geothermal startup Fervo Energy said Monday it hopes to raise up to $1.3 billion in its initial public offering.\u00a0<\/p>\n
The company would be valued at up to $6.5 billion if shares sell at the top of its $21 to $24 price target. That\u2019s more than twice what Fervo had reportedly been seeking earlier this year when it confidentially filed paperwork with the SEC to start the IPO process. <\/p>\n
The stock will trade on Nasdaq under the ticker FRVO.<\/p>\n
Fervo\u2019s price target comes on the heels of X-energy\u2019s successful IPO. The nuclear power startup raised $1 billion in an upsized IPO. When the company set its price target for the IPO, it sought a valuation of around $7 billion. Today, X-energy\u2019s market capitalization i over $8 billion.<\/p>\n
Both Fervo and X-energy have been boosted by surging electricity demand from tech companies, which have been racing to secure supplies to feed their AI data centers. The scramble has driven prices for new natural gas power plants up 66% in the last two years.\u00a0<\/p>\n
Fervo says it\u2019s Cape Station power plant \u2014\u00a0its first large-scale project \u2014\u00a0will generate electricity at $7,000 per kilowatt of installed capacity. The company\u2019s goal is to reduce that to $3,000 per kilowatt of capacity, at which point it will start being cost competitive with natural gas.\u00a0<\/p>\n<\/div>\n