Geothermal startup Fervo Energy said Monday it hopes to raise up to $1.3 billion in its initial public offering.
If the stock sells at the upper end of the $21-$24 price target, the company would be valued at up to $6.5 billion. That’s more than double what Fervo was seeking when it confidentially filed with the SEC to begin the IPO process earlier this year.
The shares will trade on Nasdaq under the symbol FRVO.
Fervo’s price target follows X-energy’s successful IPO. Nuclear power startup raises $1 billion in massive IPO The company sought a valuation of about $7 billion when it set its IPO target price. X-energy’s current market capitalization is over $8 billion.
Fervo and This scramble has caused the price of new natural gas power plants to rise 66% over the past two years.
Fervo said its first large-scale project, the Cape Station power plant, will produce power at $7,000 per kilowatt of installed capacity. The company’s goal is to reduce this to $3,000 per kilowatt of capacity, at which point it would become cost-competitive with natural gas.
