Geothermal energy developer Fervo Energy Co. (FRVO.US) has raised $1.89 billion in its U.S. initial public offering, selling 70 million shares at a price of $27 per share. The company had previously raised both its price range and the number of shares offered on Monday, setting the revised range at $25 to $26 per share. Based on the IPO price and the total number of outstanding shares disclosed in company filings, Fervo's market valuation stands at $7.7 billion. Sources indicated earlier that the offering was oversubscribed by a multiple in the double digits.

Fervo utilizes horizontal drilling and multi-stage hydraulic fracturing technology in its pilot projects to generate geothermal energy. The company anticipates its first commercial power plant will be connected to the grid by the end of 2026. Backed by Breakthrough Energy Ventures, an investment firm founded by Bill Gates, and shale oil producer Devon Energy Corp., Fervo is among the numerous energy producers aiming to capitalize on the growing electricity demand from data centers.

According to company documents, the potential contracted revenue under Fervo's full portfolio of power purchase agreements is approximately $7.2 billion. The company has also secured power purchase agreements with Southern California Edison, Google (a subsidiary of Alphabet Inc.), and Shell. Alphabet participated in a $462 million investment round in December of last year.

Fervo's Cape Station project in Beaver County, Utah, with a capacity of 500 megawatts, is poised to become one of the world's largest geothermal power generation facilities. Overall, Fervo holds leases covering a total area of 595,900 acres. Of this, 2.6 gigawatts are in advanced development stages, while over 38 gigawatts are in early-stage development.

Filings show that for the fiscal year ending December 31, 2025, Fervo reported revenue of $138,000 and a net loss of $70.5 million. This compares to revenue of $199,000 and a net loss of $41.1 million for the same period the previous year.

The filings also indicate that post-IPO, company co-founders—CEO Tim Latimer and CTO Jack Norbeck—are expected to retain control of the company through their holdings of super-voting Class B shares.

The IPO was led by underwriters JPMorgan Chase, Bank of America, RBC Capital Markets, and Barclays. The company is scheduled to begin trading on the Nasdaq on Wednesday under the ticker symbol "FRVO."