Fervo Energy IPO: Geothermal energy developer debuts on the Nasdaq

Early trading in shares of geothermal energy developer Fervo Energy has started on Freedom’s trading platform. The company currently generates almost no revenue, but it has backing from Bill Gates’ investment firm as it seeks to capitalize on growing power demand from data centers. Later on Wednesday, the stock will debut during the main session on the Nasdaq under the symbol FRVO.US.

Fervo, which develops next-generation geothermal projects, raised $1.89 billion in its IPO on Nasdaq. The company sold 70 million shares, about 26% more than originally planned, at $27 per share – above both the previously announced and later revised pricing range of $25-26 per share. Initially, the company had expected to price the offering at $21-24 per share. Bloomberg reported that actual demand for the offering exceeded the number of available shares by a “double-digit multiple.” Based on the outstanding shares listed in its filings, Bloomberg estimated the company’s market capitalization at $7.7 billion.

The IPO was organized by JPMorgan, BofA Securities, RBC Capital Markets, Barclays, Baird, BBVA, Guggenheim Securities, MUFG Securities America, SG Americas Securities, William Blair, Piper Sandler, and Wolfe Nomura Alliance.

According to the IPO prospectus filed with the U.S. Securities and Exchange Commission, Fervo plans to use the proceeds from the deal to expand its land portfolio, strengthen working capital, and cover operating expenses.

Fervo Energy was founded in 2017 by former BHP Billiton drilling engineer Tim Latimer and Dr. Jack Norbeck, a former researcher at Lawrence Berkeley National Laboratory, which is operated by the U.S. Department of Energy.

In its IPO prospectus, the company describes itself as a pioneer in enhanced geothermal systems (EGS) technology for clean energy generation. Traditional geothermal systems require naturally occurring underground water sources, while EGS injects water from the surface, heats it through fractures in underground rock formations, and then uses it to generate electricity.

According to Fervo's filings, this approach addresses the scalability challenges and development risks that have historically limited the geothermal industry, which should ultimately lower electricity supply costs.

For 2025, Fervo reported a 31% decline in revenue to $138,000 and a nearly 33% increase in the net loss to $54.6 million. The company says it is still transitioning from demonstration projects to commercialization. It plans to begin initial power deliveries from its Utah facility, which is currently under construction, by the end of 2026.

Fervo also has preliminary power purchase agreements with several companies, including utility company Southern California Edison, Shell, as well as a partnership involving Google and NV Energy. Under that partnership, NV Energy will supply Google data centers with clean energy. Fervo estimates the value of this portfolio at roughly $7.2 billion.

Fervo has attracted a number of prominent backers. In 2025, the company drew the attention of Bill Gates, who visited its Utah site, where it plans to build a geothermal power plant.

“Geothermal is one of the most promising ways to deliver clean energy that’s reliable and affordable,” Gates wrote on his blog. “Intermittent power sources like wind and solar will play a key role, but we also need sources of energy that work around the clock without contributing to climate change, like geothermal and nuclear power.”

In December, Japanese conglomerate Mitsui & Co. announced an investment in the company, followed in January by private investment firm B Capital.

The next decade in energy markets will be defined by clean, firm generation that can be delivered quickly and with predictable economics, B Capital said in explaining its investment decision. Traditional geothermal projects could only be developed in a limited number of geologically ideal locations, while Fervo's technology significantly expands those opportunities, according to the firm. Mitsui & Co. also pointed to the advantages of Fervo's technology.

Reuters reported that surging demand from data centers supporting AI workloads, combined with rapid electrification across transportation, housing, and other industries, is driving up electricity prices in the U.S. and increasing the need for reliable energy sources. Reuters also noted that Fervo's IPO comes amid conflict in the Middle East, which has pushed oil prices sharply higher.

However, the company itself warned in its IPO prospectus that it has generated losses every year since its founding and that the situation is unlikely to improve over the next several years. It also acknowledged that it may never become profitable because constant shifts in market conditions make forecasting difficult.

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Freedom clients will be able to trade Fervo Energy shares before the start of the main U.S. session. Premarket trading will open 2-3 hours early, at 15:30-16:30 Astana time. Investors can participate by selecting the symbol FRVO.US on the Freedom platform.