Fervo Energy raised $1.89 billion in an upsized initial public offering (IPO) priced at $27 per share in May 2026, above its marketed range of $25 to $26, which was twice raised during the offering process [1, 2]. The strong investor demand led the company to sell an additional 14.6 million shares. On its first day of trading on Nasdaq, Fervo's shares soared between 33% and 35%, closing at $36.54 [1, 2].
The IPO initially valued Fervo at approximately $7.6 billion. However, the sharp rise in share price pushed the company’s valuation beyond $10 billion [2]. Sarah Jewett, Fervo’s senior vice president of strategy, said, "We were asked a few times on the roadshow, ‘Why aren’t you raising more money?’ As we saw the demand come in, there were just enough signals pointing towards upsize being not only within the realm of possibility, but the realm of the encouraged." [2]
Fervo applies enhanced geothermal technology, using deep directional drilling methods adapted from the shale oil and gas industry. Jewett said, "We’re repeating the playbook from the shale energy industry but with the answer key." [2] The company has permits to develop up to 2 gigawatts of geothermal capacity at its Cape Station project in Utah, with plans to deliver 500 megawatts in its first phase over about three years [2].
The company benefits from increasing demand for geothermal power, especially from AI data centers seeking reliable, clean energy sources [2]. Fervo has also applied to expand the grid interconnection capacity at Cape Station to support larger-scale operations [2].
Fervo plans to begin operations at its Cape Station geothermal power plant in Utah this year [2].
